Sell Cisco (CSCO) and Microsoft (MSFT) , Amazon's (AMZN) got chime. It wants to own the video conferencing world. Look out Skype, see you later WebEx; it's over, as you can't compete against Amazon on anything anywhere.
Hold it, wait a second; do you mind if I say that this is becoming a very tired narrative? It seems like every day we hear of something that Amazon is working on and we now accept that not only is it the best, but it will take the world by storm.
I have tremendous respect for Amazon. If you don't, you simply don't belong in the room. A huge percentage of the companies that I am seeing out here are all about making Amazon's Web Services work better for you. They are about trying to get it so that your organization can be sure that AWS is producing the results you expected. Or they are about partnering with Amazon in a way that furthers their interests together -- witness the breakthrough partnership that VMWare announced with them that's so vital for VMWare's virtualization software because the customers want to be able to use AWS so badly.
But we have seen stories about Amazon about to wipe out stores with its own bricks-and-mortar offerings that are going to take the nation by storm. We have seen articles about how Amazon is going to move into auto parts and really sting the likes of O'Reilly Automotive (ORLY) and Advanced Auto Parts (AAP) and crush AutoZone (AZO) . We have seen how it is going to begin something that's akin to its own air force, to be less beholden on United Parcel (UPS) and FedEx (FDX) .
I say, terrific. Growth Seeker portfolio holding Amazon is unbelievable at executing. But I am beginning to think that the instant selling of any target that now greets the news story doesn't make sense. The $770 to $715 bruising of AutoZone is typical of what I am talking about. I am not saying that AutoZone isn't vulnerable. Every retailer is theoretically vulnerable to Amazon's ways. I am saying that I would be a buyer, not a seller of AutoZone because of this flurry of news stories. I feel the same way about the food chains. Yep, they have crummy margins, but I would not sell them off of Amazon. I would sell them off of rife competition among themselves.
So, let's just do this. Let's stipulate that Amazon's working on something against everyone, everywhere, right now. But maybe, just maybe, you should buy the Amazon-related dip, and not sell it, given that there's only so much one company can do at one moment and Amazon's already doing all that's not only humanly possible, but artificially intelligently possible as well.
Oh, and to be sure, I still like the stock of Amazon. I said it should be bought after that last quarter because that's the hiccup that lets you in.
But if it goes up on this story, I would wait a few days for it to come down. Enough is enough.