Amazon Stock Can Grow Even Higher over the Next Year
In a market of companies fluctuating in value and confusing investors, Amazon.com, Inc. (NASDAQ:AMZN) stands out. Amazon stock has a curve that reflects the company’s approach, which can be summed up simply as constant growth. The line points up, but its angle of attack has gotten even sharper recently. Amazon has yet to unleash its full potential.
Amazon stock has gained 267% in the past five years, 60% of which was in the past year alone. Indeed, Amazon stock is edging ever closer to the milestone of $1,000.00 per share. This could happen sooner than anyone had thought, certainly within a year. Consider that Amazon shares have gained over $340.00, or 69%, since last February.
At this rate—and the chart suggests that the share price could accelerate even faster than in the past six months—AMZN stock, which currently sells for $824.00 per share, should hit $1,000.00 by next February. It has grown at a rate of about 5.9% per month. Based on the current price, four months would suffice for it to hit $1,000.
Naturally, the chart is going to move by itself. It reflects Amazon’s potential based on constant innovation and steps to grow revenue. Amazon’s goal appears to be to eliminate retail shopping, or at least reduce it. To do that, it’s not enough to have excellent products, the best price, and an easy-to-use website with algorithms that outsmart users, fixing their spelling mistakes in order to locate the items they want.
Yes, those are all necessary ingredients for success in online selling. Amazon has mastered them. But now, Amazon wants to focus on making the entire online shopping experience more convenient. In other words, Amazon wants to make deliveries faster, more efficient, and safer. Are you expecting a large package from Amazon? Rather than waste time waiting for the mail carrier or courier to arrive with your order, why not allow Amazon to deliver the package directly inside your home, without you needing to be there?
Amazon wants to Get into Your Home
Amazon is studying just that: ways to deliver the items you ordered directly to your residence rather than to your mailbox or doorstep. Evidently, this avoids several security hassles. It also avoids the annoying “failed delivery attempt” notices, which mean you have to wait another day, or a whole weekend, to get your package.
Those who have already been using Amazon might appreciate the convenience, but probably won’t get too excited. But current Amazon users aren’t the target of the company’s new in-home delivery effort. Amazon is going after new customers, the ones who have shunned online shopping because of past or perceived inconvenience.
The sole purpose of Amazon’s new project is such that when you return home, you have your package there, rather than having to schedule a new delivery. In the days when other visionaries like Elon Musk outline their detailed plans to reach and colonize another planet—Mars—this may not seem like much. In fact, it’s a logistical nightmare and only Amazon could take up the problem.
To solve the evident problem of how to unlock the customer’s front door, Amazon will work with lock and door manufacturers to provide customers that option. Amazon has already contacted two firms that specialize in smart locks, as well as Garageio, which manufactures high-tech garage doors that can be controlled by smartphone. Amazon is currently testing this system in Seattle. (Source: “How Amazon Might Get Through Front Door,” The Information, September 27, 2016.)
It Sounds Odd, But Amazon Will get it Done
Based on Amazon’s success rate, it’s better to speak in terms of when than if Amazon achieves this. Allowing package deliveries directly inside customers’ houses means that Amazon.com will be able to sell more and more items, including major furniture, high-cost appliances, and precious goods—even finding room for higher margins.
And it is assumed that those who have a door or a lock connected to the Amazon system ultimately retain the choice of whether they want, or not, to allow the actual delivery people access to their home outright or to their garage, or a shed of their choice. Of course, one can imagine the project boundaries: are we really ready to let delivery people in our homes without the ability to monitor them?
Everyone certainly has in mind the fear of a theft during a delivery. Certainly, we can assume that those who have connected locks and doors also have connected cameras, and smartphone-controlled homes. These things exist now.
Perhaps Amazon’s delivery staff will have to get security clearances and customers can get their names ahead of time, such that they can release the door lock remotely upon verifying their IDs. Either way, the fact remains that Amazon is constantly looking for ways to increase revenue and, ultimately, that’s what drives Amazon stock.