Around the first of June, Amazon shares broke though the $1,000 barrier which is great if you hold the stock. For many people $100 is a break through because the stock has to continue to be a growth stock and if we use the Amazon stock – the stock has to rise to $1,200 to make a 20% return. It could do that for over the past year, the stock is up 40%. The question one needs to ask is how much further does it go up?

There are a number of reasons why the stock should continue – if has the resources to do whatever it wants which can be a good thing. The stock is worth more than Wal-mart even though Wal-mart which is the biggest retailer in the world has sales 3 times larger than Amazon. Investors according to Spencer Soper of Bloomberg News put more value on Amazon’s web traffic and delivery network. Amazon is spending billions of dollars on research and development in an effort to make it the lowest cost delivery business. Amazon has many countries in the world to penetrate including China and India – home of a billion people each.

If you know someone that has Amazon Prime – the $99 a year subscription, it dominates the market. There are 80 million subscribers who pay for delivery discounts, music and video streaming, and photo storage. Amazon continues to push its way into all retailing categories. The incredible statistic with Amazon Prime is once someone subscribes to it, there is a 96% renewal rate every year. With a number 96% retention, Amazon is now offering Prime -lite to have everyone to try and get hooked on the service.

Amazon’s cloud-computing division of Amazon Web Services (AWS) has a global network of data centers and rents out space to many companies including the US government. The fees for AWS bring in $246.8 billion. At the moment Amazon is one of the best users of data to achieve the goals for everything it sells.

Another aspect is the FANG trade of Facebook, Amazon, Netflicks and Google plus add in Apple and you have 25% of the rise of the stock exchange and a recent study suggests 4% of the stocks typically make up the greatest percentage of the rise of the stock exchanges.

Linking to dividend paying stocks, while Amazon does not pay a dividend it is a stock which has transformed the economy. If you do not own it, if you own a index fund it should be in it. While Amazon keep going up, no one knows for the stock market to have perfect information is to look at what has happened. In all likelihood, Amazon will not lose that much before it continues climbing upwards.

There are more questions than answers, till the next time – to raising questions.