Prepare for Another ‘Magnificent’ Year With Amazon Stock

Stocks to buy

Some skeptics might say that no company is too big to fail. However, e-commerce giant Amazon (NASDAQ:AMZN) continues to deliver value and AMZN stock still has room to run. As Amazon continues to make smart moves to cement its position of strength in multiple business segments, investors can confidently choose to hold a few shares in the long term.

Remember, Amazon isn’t just the undisputed heavyweight champion of American e-commerce. The company also has a powerful presence in the areas of cloud computing, grocery delivery and healthcare. So, if you’re looking to add some mega-cap growth stocks to your portfolio, don’t overlook Amazon, a member of 2023’s “Magnificent Seven” club.

AMZN Stock: A Holiday Winner That Can Keep on Running

2023 is shaping up to be a standout year as Americans shop online and spend jaw-dropping amounts of money. The financial figures for Black Friday and Cyber Monday showed that U.S. consumers aren’t letting inflation crimp their holiday spending this year.

The strength of the American consumer is one of the main reasons AMZN stock has performed “magnificently” this year. As long as Amazon continues to dominate U.S. e-commerce, there’s no reason the stock can’t move higher in 2024.

Plus, Amazon continues to make adjustments in order to cement its leadership position in e-commerce. For example, Bloomberg reported that Amazon is reducing its platform’s “fees for merchants selling clothing priced below $20.”

This might seem like a counterintuitive strategy. However, it’s actually quite savvy as it will help Amazon compete against China-based fashion e-commerce platform Shein. The low-price apparel market can be lucrative, and Amazon wants to entice both consumers and merchants to its platform. Keeping merchant fees low is a smart way to achieve this objective.

Amazon Pilots a New Grocery Delivery Plan

When AMZN stock dropped briefly in late October, the critics may have decided that a crash was underway. They were wrong then, and they’ll continue to be wrong about Amazon. The company just keeps getting bigger and better with fresh, new ideas and strategies.

Just to give you another example, Amazon is trying out a highly affordable grocery delivery subscription plan in three cities. According to a TechCrunch report, the three cities are Denver, Colorado; Sacramento, California and Columbus, Ohio.

For $9.99 per month, this new subscription tier provides Amazon Prime members with “unlimited free grocery delivery on orders over $35 from Whole Foods Market and Amazon Fresh.” Plus, they’ll get “unlimited 30-minute pickup on orders of any size.”

This certainly sounds like a win-win scenario. Customers will find it hard to resist the free delivery and 30-minute pickup for their grocery orders. The members will want to order at least $35 worth of groceries in order to qualify for these perks.

Keep It Simple and Successful With AMZN Stock

Amazon’s critics will try to fight the trend until the end. There’s no need to join them when sensible investors can just stick with a consistent winner. After all, Amazon earned its “Magnificent Seven” membership by growing and delivering value to the shareholders in 2023.

How will 2024 shape up for Amazon and its loyal investors? There are no guarantees, but the coming year could be outstanding as Amazon continues to deploy smart, forward-looking strategies. Therefore, AMZN stock earns an “A” grade and you’re invited to consider it for your long-term holdings.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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