There’s no question that Amazon.com, Inc. (NASDAQ:AMZN) has been one of the most disruptive forces ever in both retail and technology.
However, Wal-Mart Stores, Inc. (NYSE:WMT), Microsoft Corporation(NASDAQ: MSFT) and American Eagle Outfitters (NYSE:AEO) are three companies that are still thriving in areas that AMZN has left mostly barren through its dominance.
Here’s why investors in these stocks are confident that they don’t necessarily have to beat AMZN to succeed.
Stocks Feasting on Amazon’s Leftovers: Wal-Mart Stores, Inc. (WMT)
Not only did WMT deliver its strongest same-store sales growth (1.6%) since 2013 in Q2, it also grew digital sales by 11.8%. Those numbers are nowhere near the staggering growth numbers that Amazon has been reporting. But they are positive growth numbers in an extremely difficult environment.
Moody’s analyst Charlie O’Shea said it best: “No one catches Amazon online. The key is to be No. 2.”
WMT’s recent $3 billion buyout of Jet.com may be the clearest sign that the company is aggressively pursuing that No. 2 spot. Not only has Jet reported Amazon-esque 168% sales growth in the past year, it also provides WMT with a fresh brand to market as a pure online Amazon rival. No matter how great WMT makes Walmart.com, it is not fresh and exciting the way Jet.com could be. Plus, Jet will benefit from WMT’s scale and vendor relationships.
It could end up being a perfect match, and Jet.com might have a firm grip on that No. 2 spot behind Amazon within a matter of years.
Stocks Feasting on Amazon’s Leftovers: American Eagle Outfitters (AEO)
The long and growing list of mall retailers that Amazon has driven into bankruptcy is…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
