By now, I think it’s safe to say that Jim Cramer was dead wrong.
And I was right on the money.
Here’s the thing. I remember very clearly the day that Amazon.com Inc. (AMZN) crossed the $1,000 mark on May 31, 2017.
Cramer, the host of CNBC’s Mad Money looked at the price and slammed it. He said that “psychologically” $1,000 is a lot to pay for a stock he felt was getting ahead of itself.
As the saying goes, that was then and this is now.
No doubt, the tech leader hit a rough patch late last year with the rest of the market. And it has come under fire recently as part of the Big Tech backlash.
Yet, as the firm prepares to report earnings later this week, the stock is once again trading in the $2,000 range, double what Cramer was worrying about.
Not only that, but the “King of E-commerce” is just shy of hitting another historic moment. It’s roughly 2% from having a $1 trillion market cap.
And today, I’m going to show you why I still firmly believe the stock will hit at least $3,000 a share – and likely much, much more than that…
Check it out…
We should all be shaking in our boots.
Tension in the Middle East and the South China Sea… a political mess at home… sky-high stock prices.
And here’s something else to worry about…
On Nov. 1, a Wall Street Journal headline warned about the “Consumer Confidence Conundrum.”
Here’s the worry: According to WSJ writer Chris Dieterich and the folks he talked, because consumer confidence is at its highest level since December 2000, it’s time to “add this to the list of reasons investors ought to be getting nervous.”
The reason: It may signal the bull market is coming to an end.
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This was supposed to be a lousy quarter for earnings.
But even the dourest of bears are starting to admit that’s not so.
The Wall Street Journal begrudgingly reported that forecasts for second-quarter profits for the S&P 500 came in better than expected.
The leading financial daily said per-share earnings were expected to decline by 2.6% for the period, or less than half the usual forecast for the June quarter.
But,” the Journal added – relishing the chance to add a sour note to its report – “that is no thanks to the technology sector.”
From where I stand, though, it looks like the good folks at the Journal just don’t know how to analyze technology stocks.
Fact is, four major tech firms just turned in top-shape earnings reports that are further bolstering the market’s post-Brexit rally. (You probably heard about the historic one from Facebook Inc.)
Consider that since the market started bouncing back on June 27 the tech-centric Nasdaq Composite has gained 12.7%. That’s49% better than the S&P 500’s returns.
Do you need further proof – more reasons – that you must be a tech investor if you want to ride the unstoppable trends that will beat the market?
Well, I’ve got four of them…
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