Not even a brutal market selloff can keep Amazon.com Inc. (AMZN) down.
Here’s the thing. This is no ordinary bear market, one defined as a 20% drop from the previous high.
It’s the coronavirus panic that has most of the economy in a deep freeze.
As a result, physical retail stores are getting hammered. The U.S. Commerce Department says retail sales for March fell a seasonally adjusted 8.7%.
That’s the biggest one-month decline since the agency began keeping records back in 1992.
And while Amazon definitely faced some supply chain issues, the King of E-commerce came through when the nation needed the tech giant’s help the most. It delivered millions of packages to homebound families all across America.
With that performance under its belt, yesterday the firm’s stock hit a record high – a feat that few stocks can match.
The coronavirus crisis is an event like nothing we’ve seen before in our lifetimes. It’s put an unprecedented strain on our economy by forcing people to stay in their homes. The markets may be down, but many of the same high-tech innovations that drove the pre-virus economy to new heights are helping society stay connected now. That means working from home, shopping for necessities online, and keeping in touch with friends and family. In short, online infrastructure has gone from convenient to totally indispensable. This is a prime opportunity for any online innovator to rise to the occasion, and rise in value. And when this crisis passes, tech will be poised to lead the market again. Click here to watch.
When we spoke on Tuesday, I made a bold prediction: the Covid-19 outbreak, while serious, will not be as bad as the worst-case predictions would have it.
For one, much of the country is already on lock-down, cutting off the spread of the disease. That is buying us some valuable time as researchers race to find a cure or at least a good treatment option.
And I’m happy to report there have been some exciting developments in the search for treatments and vaccines against Covid-19
Last week, I noted that most vaccine research remains rooted in 1950s technology.
Despite mapping the entire human genome back in April 2004, drug firms and scientists still rely on slowly growing viruses inside chicken eggs to create a vaccine.
This takes a lot of time – and a lot of eggs.
But the Covid-19 pandemic has them racing to find a treatment using novel and fascinating science.
Millions of Americans found yesterday’s headlines about the coronavirus more than a little disturbing.
After all, the number of U.S. cases has climbed above 10,000. And while that sounds like a lot from the standpoint of raw numbers, I believe at a time like this, it’s important to keep this kind of news in context.
In fact, I’m going to go out on a limb here and predict that the total number of infected Americans will be much less than what Big Media would have you believe.
I realize that many folks are scared and frustrated because the $1.2 trillion life sciences sector has not yet released a vaccine.
With that in mind, I am starting the first of a two-part series on that very subject.
Today, I will walk you through why we still use 1950s technology in the search for a vaccine.
My wife and I recently helped our daughter Jordan find a reliable used car.
And since Jordan only recently got her grad degree, I have to say she was pretty price sensitive.
She had roughly $9,000 to put down and wanted to limit her payments to about $100 a month, so there wasn’t a lot of wiggle room on cost. She bought, a 2009, one-owner, fully loaded Honda CRV with only 45,000 miles on it.
I’m bringing this up to you because I think our recent experience illustrates a very important point for tech investors.
When it comes to putting your money in stocks that can crush the market, don’t let high “sticker prices” warn you off of great opportunities to build lasting wealth.
Instead, you have to focus on the long-term upside. You know, it’s the old saw by Warren Buffett that price is what you pay but “value is what you get.”
And that really comes into play with a firm that is pioneering the field of robotic surgery.
At first glance, $600 a share seems steep. But this is a stock that could hit $1,800 a shares in as little as seven years.