Why You Shouldn't Buy Amazon Stock Because of Its Retail Business

Amazon.com (NASDAQ: AMZN) is a giant internet retailer. It has also evolved over time to provide cloud computing and other technology services. The historical view of the company, however, needs to be considered carefully when you examine Amazon as it exists today. Simply put, don't buy this stock for its retail business. Here's why.

The first thing to recognize about Amazon is its size. With a $1.3 trillion market cap, it eclipses almost all other companies. Indeed, there are only a handful of companies that play in the same market cap area. And with second-quarter sales of $134 billion, there's a lot of revenue being generated by Amazon's collection of businesses.

Image source: Getty Images.

Continue reading


Source Fool.com