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TheStreet Open House

Amazon to $400: Haters Can't Make Sense of It

NEW YORK ( TheStreet) -- Last week, Amazon.com (AMZN) made headlines, and rightfully so, for cutting a deal with the United States Postal Service (USPS) for Sunday delivery. It's worth outlining Amazon's otherworldly retail dominance, but, as usual, doing the homework over time and moving beyond the obvious can give you an edge crushed AMZN shorts do not have.

As I noted in the aftermath, Sunday delivery changes the game or, at the very least, shifts the pace.

First, there's the obvious. Not only does Sunday delivery give shoppers one less reason to visit brick-and-mortar operations, it gives them one more reason to drop $79 a year for Amazon Prime. Second, it begs the question -- why didn't any of these geniuses running things at physical retailers think of this or something equally as clever first. (Say it with me, They're mired in a culture of obviousness).

Headed into the holidays, this puts further pressure on traditional retailers. Sunday delivery should also increase the number of orders Amazon takes, which ought to enhance its Q4 top line (and, quite possibly, bottom line).

Nothing short of incredible.

Granted, this is anecdote, but my local United Parcel Service (UPS) driver told me his unit usually runs about 20,000 packages a day. But, in morning meeting after morning meeting lately, his bosses have telling the crew to get ready for an additional 10,000 packages daily between now and the end of the year. While Amazon boxes comprise a good chunk of the current 20,000, at least this one faction of UPS expects Amazon to own a lion's share of the extra 10K.

Whether or not that's enough to make you bullish on UPS, I don't know.

All of this -- and various other offshoots of Amazon's amazing e-commerce story -- illustrates an obvious dominance that drives AMZN stock higher, even in absence of beefy profits. The few remaining tortured AMZN bears focus on profitability, ignoring the good "problem" Amazon has.

Spending sacrifices short-term numbers, but only because it comes in response to massive near-to-long-term opportunity. Given all the money tech companies sit on, this should be a breath of fresh air, not a red flag for investors. That said, AMZN's performance (up 64% over the last year) proves that any bearishness most likely comes from a vocal, yet misguided and emotionally stubborn peanut gallery.

As amazing as all of this is, it's really not the most incredible storyline in the Amazon narrative.

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