With a PE of 293, it’s easy to say that Amazon is exceedingly overvalued. But I fundamentally disagree. As a matter of fact, buy AMZN. The stock is trading at $715, but the company still has tremendous upside.

While Amazon undoubtedly owns the e-commerce sector, people do not realize the other services wherein they also dominate: cloud-based storage, for example. This is a tremendous business, and it is not well known that they have a substantial market share in this area. 

When innovators like Jeff Bezos and Steve Jobs find a way to revolutionize an industry, they continue to direct that industry’s trends for many years thereafter. We’re seeing Amazon Prime dominate the market, and I don’t foresee another competitor coming close. Consumer discretionary spending has increased (maybe not as much as we’d like), which is sure to benefit a business model similar to that of Amazon. Would I buy this stock right now? No, simply because the market is relatively expensive at the moment. However, my thesis that Amazon has plenty of room to grow as a company should come to fruition as we continue to move out of the Great Recession.