If I was looking to allocate $1,000 in stocks today, I would concentrate on industry leaders and beloved brands that still have bright futures. I believe Amazon ( AMZN -2.46% ) and Apple ( AAPL -3.00% ) are still two very attractive investments to hold until retirement.
These stocks have made investors massive returns over the last 10 years, and it’s no secret why. They provide products and services used by billions of people, and their techy nature and massive revenue streams enable them to manufacture growth by continuing to delight their customers with innovation. After reviewing what these companies are up to (see below), consider investing $1,000 in the one stock you like best, or splitting the total and putting $500 into each if you can’t decide.
Amazon’s stock price is down 8.5% over the last year, which trails the 7.4% positive return of the broader market as measured by the S&P 500 index. But it’s only a matter of time before Amazon takes off again. While revenue is not growing as fast as it was in 2020, revenue was still up 57% in the fourth quarter of 2021 over the same quarter in 2019.
Amazon doesn’t innovate in the same way a product manufacturer like Apple does. Instead, Amazon’s innovation is through faster delivery speeds, which is crucial to staying ahead of competitors. This is why Amazon was able to accelerate revenue during the pandemic. It doubled its fulfillment capacity over the last two years, which is not easy for a company that generated $470 billion in revenue last year.
Market participants are focused on near-term headwinds, such as a tight labor market, higher labor costs, and inflationary pressures on Amazon’s bottom line. In the fourth quarter, higher costs to deal with these issues cut Amazon’s operating profit in half compared to the year-ago quarter. But CEO Andy Jessy is not only optimistic about where the business is headed. He suggested in Amazon’s 2021 annual report that there are still new areas…
Read complete post here: