Where Will Amazon Stock Be in 10 Years?
It might be difficult to envision holding on to one stock for 10 years. But long-term investing is ideal because it gives a company time to execute its business strategies while smoothing out short-term volatility and the impacts of temporary geopolitical crises or the business cycle.
For Amazon (NASDAQ: AMZN), the next decade will be crucial. The company appears to be at a crossroads, where it must decide if it wants to transition into a mature and stable business built around its currently reliable cash cow segments, or continue to pour money into pursuing new growth drivers that may or may not perform as expected. The choices that management is making today could impact its stock price performance over the next 10 years and beyond.
Under CEO Andy Jassy, Amazon has made impressive progress in improving the efficiency of its e-commerce business. This strategy has involved breaking up its U.S. distribution network into eight independent hubs that serve their specific regions. And it has helped speed up delivery times and bring down transportation costs.
Source Fool.com
