Is Amazon a Good Buy After Prime Day?

Two Big Tech companies – Amazon (AMZN) and Apple (AAPL) – held major events this week. Apple unveiled its iPhone 12 and foray into 5G on Tuesday. (I covered the event in Tuesday’s Market360You can catch up on it here.) Amazon also kicked off its two-day Amazon Prime Day on Tuesday.

Expectations are big for Amazon’s Prime Day. For the first day, analysts are looking for the company to bring in a whopping $9.91 billion in revenue worldwide. This is a 43% rise from the $6.93 billion in revenue the company made in 2019. Some of that growth will be thanks in part to Amazon Prime Day expanding to Brazil and Turkey. Here in the U.S., revenue is estimated to hit $6.17 billion, which represents 62.3% of total revenue. 

If the company meets expectations, it will make it the most successful Amazon Prime Day ever recorded.

The numbers are still rolling in, but they’re looking pretty good for Amazon so far. In fact, it’s already crossed $3.5 billion in revenue. According to Edison Trends, just seven hours into the event, revenue climbed 19% year-over-year from Amazon Price Day in 2019. And, Numerator found that 30% of customers bought holiday gifts, while 47% purchased products that were promoted as Prime Day deals. In addition, retailers outside of Amazon saw a spike in online sales, rising an average 70% year-over-year.

Interestingly, Wall Street yawned at the events, as both Apple and Amazon shares traded lower. Apple’s iPhone 12 wasn’t exactly “groundbreaking” for the company, it was simply thinner, faster and with a better camera. The reality is that the stocks that have breakthrough technology will be the ones to breakout first.

As for Amazon, it is trying to take over the world with distribution. However, it is facing competition from Target (TGT), Walmart (WMT) and Costco (COST). Case in point: these companies are coming up with their own “Prime Days.” Target has a “Deals Day,” which also started on Tuesday; Walmart will be hosting a “Black Friday Deals for Days,” which will begin at the beginning of November; and Costco is stepping up its online game.

So, what does this mean for investors interested in Amazon?

Well, it’s certainly not a bad stock. In fact, it receives an A-rating in Portfolio Grader, making it a “Strong Buy” right now. The stock is up more than 75% year to date, but some of that strength is because it’s heavily weighted in the SPDR S&P 500 (SPY) and NASDAQ 100 (QQQ), which track the S&P 500 and NASDAQ. Currently, it holds a 4.79% weighting in SPY and an 11% weighting in the QQQ. So, every time someone buys an index, they’re putting a floor under the tech stocks. That’s why AMZN has been so stable.

Amazon is set to release its third-quarter earnings in the next few weeks, so we’ll get a better feel for how the company has performed these past three months and what company management sees going forward.

Invest in These Stocks First

In the meantime, if you’re looking for high-growth stocks, there are other stocks to consider. I’m talking about the fundamentally superior companies that are well-positioned to release strong third-quarter reports, and, as a result, see their stocks surge on the results.

You see, I remain convinced that we’re going to experience wave-after-wave of better-than-expected third-quarter earnings—and I’m not alone. The analyst community continues to revise their earnings forecasts higher. According to FactSet, analysts have upped their estimates by 4.1% in the past three months and are now expecting the S&P 500’s earnings to decline by 21%, compared to previous forecasts for a 25.3% dip.

I look for my Platinum Growth Club Model Portfolio stocks, in particular, to flourish. Currently, average sales are expected to be up over 30%, average earnings are pushing 70% and the average earnings surprise should be more than 20%.

The truth of the matter is our stocks are much more powerful than the broad market, which is what makes Platinum Growth Club so special. Case in point: From September 1 to today, the S&P 500 is down more than 1%. In comparison, our Platinum Growth Club Model Portfolio is up more than 6%!

So, if you’re interested in the fundamentally superior, high-growth stocks, then I encourage you to check out Platinum Growth Club. I have more than 100 stocks across all my services (I added five brand-new stocks to my Breakthrough Stocks Buy List last Friday), and as a Platinum Growth Club subscriber, you have full access to each and every one. If you’d rather start small, I’ve got you covered there, too. My Platinum Growth Club service comes with my exclusive Model Portfolio.

I handpick all of my Model Portfolio recommendations from the different services, so you can rest assured that you’re always invested in the crème de la crème.

If you’re interested, click here for full details. If you decide to join me here at Platinum Growth Club, not only will you have instant access to all my recommendations, but you’ll also receive my special report, Crisis Master Plan , at no extra cost to you. In this report, I’ll show you how to get ready to take advantage of a set of extraordinary financial opportunities that you might not ever see again. And this report serves as my blueprint for taking advantage of these opportunities.

P.S. I held my latest exclusive Platinum Growth Club Podcast for October yesterday. I discussed a wide range of topics, including my current market outlook, the third-quarter earnings season, my latest thoughts on big tech and whether now is a good time to invest in gold and bonds. Catch up here now.

Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Amazon (AMZN), Costco (COST)

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