Question

Would you invest in Amazon? Why or why not?

Answer 1

yes we would invest in Amazon.

The disruption business due to the coronavirus pandemic has battered the stock market, but Amazon (AMZN) is uniquely positioned to perform well despite the changes in consumer behavior. Amazon is pretty resistant to the perils of Covid 19 .Amazon stock has climbed about 37% since hitting a one-year low on March 16.

A majority of population is staying indoors to contain the effects of coronavirus. This has lead to an even bigger increase in online shopping.

In order to fulfill spiking demand, Amazon hired  100,000 additional workers and then added another 75,000 workers. The company also increased the investment it's making to boost the salary of employees, to more than $500 million, from $350 million. That additional hiring and coronavirus buying helps to explain how Amazon's first-quarter revenue climbed 26%, beating estimates of $73 billion.

Amazon also continues to invest heavily in cloud computing, transportation, video content and online video services and it leads the market in smart speakers with its line of products called Echo.

Amazon is exploring the health care market as well and acquired online pharmacy company PillPack last year for under $1 billion. Amazon faces heightened competition in cloud computing from Microsoft (MSFT), Alphabet's (GOOGL) Google and IBM (IBM).

The IBD Stock Checkup Tool shows that Amazon stock currently has a strong IBD Composite Rating of 99 out of a best-possible 99. The rating means Amazon stock currently outperforms 99% of all stocks in terms of the most important fundamental and technical stock-picking criteria.

Hence even in this pademic amazon stock is performing well so this is a buy.