How To Find The Next Amazon Stock
Amazon’s had quite the run.
You don’t see returns like that too often, and it’s inspired a flurry of “This Could Be The Next Amazon Stock” articles.
Rather than provide a specific stock and explain why it could be the next Amazon, I’m doing something different for this analysis.
I’m teaching you how to find and catch the fish rather than just giving one to you.
To find the next Amazon stock, you have to start by understanding what allowed Amazon to produce those types of returns since their IPO.
Amazon’s IPO took place in 1997, and after the dust settled on that day, Amazon had a $438 million market cap. This is important for finding the next Amazon.
The smaller a stock’s market cap, the greater potential that stock has to rapidly accelerate.
Amazon’s market cap is currently $1.58 Trillion which makes the original $438 million market cap a rounding error based on today’s standard.
The Fed can’t print enough money for Amazon to have another 180,000%+ rise. Amazon is still a great stock that has many growth opportunities in its own right, but the prospects of a stock doubling become more difficult as it grows.