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Why Mark Cuban Is Sticking with Amazon as Top Stock Holding

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Mark Cuban’s recent statement

Billionaire investor Mark Cuban recently discussed his views on Amazon (AMZN) and Netflix (NFLX) at The New York Times DealBook Conference on November 9, 2017.

He has an optimistic view on Amazon. He said, “Just because of their growth, I’ve had them for a long time. I don’t switch things around. I don’t move it around a lot.” Many fund managers believe that Amazon’s business strategy could result in strong growth for the company. The recent acquisition of Whole Foods Market (WFM) could boost Amazon’s revenues in the online grocery segment.

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Fund managers’ stances

Billionaire investor Bill Miller is optimistic about Amazon’s deal with Whole Foods Market. Mark Cuban also has a positive stance on this stock and said Amazon “is the greatest company in the world.” However, David Einhorn is betting against this stock. He said, “When companies announce large acquisitions, they typically explain the implications and strategy. AMZN has said nothing and left the interpretation to the market’s imagination, which for the time being skews optimistic.”

Amazon’s performance

On a YTD (year-to-date) basis, Amazon has returned nearly 42% as of November 9, 2017. The broader market S&P 500 Index (SPY) (QQQ) returned nearly 15.8% during the same period. Amazon is presently trading at a higher price-to-earnings multiple. Its 52-week high is at $1,135.54 and 52-week low is at $710.10.

In the next part of this series, we’ll analyze Mark Cuban’s view on Netflix.

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