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
TheStreet Open House

Invest Like a Venture Capitalist With These 5 Stocks

Amazon.com

Last up is Amazon.com (AMZN), a name that seems surprising to find on VCs' love list. After all, AMZN isn't some high-growth upstart -- it's the biggest retailer in the world by dollar volume, and it sports a market capitalization of $192 billion.

Still, VCs own 79,000 shares of this high-flying stock; that adds up to $25 million at current share prices.

Amazon is the 800-pound gorilla in the retail space. A decade ago, if you'd asked someone what "Amazon.com" was, they'd reply that it's an online book store. You wouldn't get the same response today, even if books remain an important element of AMZN's business. Amazon's existence is one of the primary factors that so many notable retail names have gone out of business in the last decade, and it's working hard to find new ways to get merchandise to customers more easily and cheaply than before.

To court customers, Amazon has expanded its service offerings to include high margin data hosting and web services, and it's also launched loss leaders like the Kindle, which are designed to spur content consumption. Luckily for shareholders, Mr. Market is willing to listen to the long-term argument in AMZN -- that's the only way to explain the gargantuan valuation premium on shares right now.

But as long as the price momentum remains intact in Amazon, it would be foolish to sell this stock. I'd still recommend keeping tight stops in this stock, even if VCs don't.

To see these stocks in action, check out the Winter 2014 Venture Capital Buys portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

 

Follow Stockpickr on Twitter and become a fan on Facebook.

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.
6 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,050.22 -21.00 -0.12%
S&P 500 1,976.88 -0.92 -0.05%
NASDAQ 4,503.6370 -2.2150 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs