Why Amazon Is Like Steroids for Your Portfolio
Steroids can lead to some explosive performance gains, but those gains could come at a cost to your health. Amazon.com (NASDAQ: AMZN) stock is like that in some ways. It offers the potential for incredible gains -- for instance, Amazon's share price increased to over $3,000 recently from a little under $2,000 at the start of 2020. Still, the stock has gone through some rough patches in the past few years, having dropped by 10% or more several times.
The coronavirus pandemic created even more volatility for the company. In its most recent quarter, Amazon had to spend $4 billion to keep employees safe and deliver products to customers. However, as people are trying to reduce the trips they make to stores, they're relying on Amazon to provide everything from essentials to discretionary items. So let's take a closer look at why holding Amazon shares in your portfolio could boost its performance -- in a good way -- over the long term.
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Source Fool.com
