This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Truth About Amazon's Drones

But autonomous vehicles, like drones, aren't investible right now. They're too pie-in-the-sky to be on your radar as an Amazon investor. In the meantime, it makes sense for Amazon to continue to build on its Amazon Fresh service in additional markets, human drivers and all.

There's no question that Amazon is a "castle in the sky" stock. It hasn't had a P/E ratio under 100 since 2011, and less than 2% of the firm's market cap is covered by cash on its balance sheet. Translation: AMZN isn't cheap by any stretch of the imagination. But momentum is still very much intact, and that means that the time is right for Amazon to make meaningful investments while costs of capital are low and its valuation is rich.

Don't expect to see drones making dropoffs at your house by 2015 -- but same-day delivery still looks like a promising enhancement for AMZN.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to
TheStreet . Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily , and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji
4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $430.52 -1.26%
AAPL $124.28 -1.40%
FB $85.96 -1.80%
GOOG $517.98 -0.93%
TSLA $265.07 -5.20%

Markets

DOW 17,564.60 -118.98 -0.67%
S&P 500 2,056.86 -11.90 -0.58%
NASDAQ 4,933.1340 -58.8060 -1.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs