With all the talk about Amazon’s (AMZN) dominance in retail, it is still the very early innings in my view.
Using a regression analysis of Amazon’s current growth, Amazon’s total sales could eclipse those of Walmart (WMT) in just seven years.
If so, that would place the e-commerce giant’s total revenue at nearly $600 million, according to my calculations.
The war between Amazon and Walmart is likely just beginning, and the casualties may be all the other smaller retailers.
But the real story will be Amazon. The company’s shares recently traded over an all-time high of $1200.
In my opinion, the shares just continue to gain more momentum.
Another sign of its growing influence: The company already has a commanding 17.5 percent weighting in the Consumer Discretionary ETF (XLY).
The next most significant tech stocks on the list are Priceline (PCLN) and Netflix (NFLX), whose weightings are a little more than 3 percent.
Much of the Consumer Discretionary ETF’s rise in 2017 has been powered by Amazon, which has now risen by over 58 percent in 2017.
- Mott Capital Management uses a long-term thematic growth approach to investing in equities. We search for investments that both reflect and help to shape generational and demographic shifts. Mott uses a philosophy of buying these companies for a 3- to 5-year time horizon, with the belief that a long-term holding period gives themes and our chosen companies a chance to fully develop. In our view, the long time horizon also serves to mitigate the risk associated with the short-term impact of market volatility.