Amazon famously rose to prominence in the early 2000s and quickly became one of the largest and most powerful companies in the world. Since then, investors have been on the hunt for the next Amazon stock.
Founder Jeff Bezos is now the richest man in the world, and Amazon has completely changed standards for both e-commerce and brick and mortar retailers.
This growth also meant that their stock price skyrocketed.
Investors who bought Amazon before it took off saw massive returns.
It’s currently the second-most valuable technology company in the world, behind Apple and ahead of Google, Microsoft, and Facebook.
Because Amazon has been so successful, investors have been on the hunt for a stock that could become the next Amazon.
While it’s impossible to predict exactly what will happen on the stock market, there are some companies that are particularly promising.
We’ve rounded up stocks that many investors think could be the next Amazon.
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Next Amazon Stock To Buy
MercadoLibre (NASDAQ: MELI)
If you’re looking to invest in stocks with a similar business model to Amazon, MercadoLibre could be a good option.
MercadoLibre is a massive online marketplace that has become very popular in Argentina and other Latin American countries.
This company has a broad range of online operations.
Their online marketplace and auction houses match buyers and sellers for a variety of different products. They also run online classifieds for cars and real estate.
They’ve also expanded into fintech with a payment processing system.
This payment processing system has a mobile app that retailers can use with a phone or tablet in brick and mortar establishments.
The company is committed to ongoing growth, and they’ve recently launched same-day shipping services in several Latin American countries.
It’s important to note that MercadoLibre stock is already very expensive, and they have a high market cap of 68.55 billion.
This means they may not be accessible to every investor, and the ceiling for their growth is lower than Amazon’s was in the early stages.
However, MercadoLibre’s finances seem to justify their stock’s consistent growth.
Their revenue has grown consistently over the first two quarters of 2021.
The Latin American market is very dynamic, and MercadoLibre has plenty of room to continue growing.
Roku (NASDAQ: ROKU)
Roku may not be an e-commerce stock, but it is similar to Amazon in terms of its potential for growth.
Right now, Roku makes digital streaming and media platforms. They are known for their Roku sticks, which users connect to their televisions to get access to thousands of video streaming options.
Traditional cable TV is slowly becoming obsolete as consumers are opting to use streaming services instead.
Over the past few years, we’ve seen a huge variety of streaming services enter the market. Roku’s tools make multiple streaming services accessible in one place.
The company already has partnerships with a wide variety of electronics and media companies, but there’s going to be continued room to expand in the future.
Right now, Roku generates revenue from a variety of sources – product sales, streaming fees, and advertising on their channels.
Their financials have been consistently successful this year. In the second quarter of 2021, they beat analysts’ EPS estimates by over 350 percent.
However, their share price is down significantly from its peak in July. This could be a time for investors to buy the dip, before the company’s share prices catch up to their financials.
Pinterest (NYSE: PINS)
Pinterest is a unique social media network and media platform. It allows users to save, curate, and share content from around the internet that they are interested in.
Pinterest has been growing slowly but surely over the past few years.
Some investors think it could be the next Amazon – a tech company with lots of room to grow in the future.
Pinterest’s user growth has been steady in the U.S., but they’ve been focusing on expanding into international markets.
They haven’t fully maximized their opportunity for ad revenue yet, as they currently only display ads to users in specific countries.
There are plenty of ways that Pinterest could expand their revenue stream.
Right now, Pinterest delivers their ads in the form of promoted pins. However, they could expand into video content and other types of ads to increase their cash flow.
Pinterest could also easily expand into e-commerce, which could help them appeal to a larger audience. Giving creators the ability to sell their products directly on the platform could be an excellent source of revenue for them.
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The company has expressed interest in developing an e-commerce platform, but hasn’t released any specific plans yet. A pilot program could start later in 2021 or early next year.
Pinterest stock has been quite volatile this year, and shares are down significantly from their highs earlier this year.
However, the company’s revenue and earnings numbers are up year-over-year and have beaten analysts’ expectations.
Pinterest’s business model still offers plenty of opportunity for growth, so don’t let this share price drop deter you.
Jumia Technologies (NYSE: JMIA)
While e-commerce companies have a strong foothold in North America, Europe, and Asia, the trend hasn’t quite taken off in Africa yet.
Jumia is a company that is set to change this. They are currently active in 11 African countries with the potential to expand even further in the future.
Many African countries currently don’t have the infrastructure to support e-commerce operations even though the demand is there. Jumia’s business model focuses on developing this infrastructure in addition to selling products.
There are over 100,000 sellers on the Jumia marketplace right now, with a wide variety of products available as well.
To facilitate this, they offer a payment processing service called JumiaPay. They use JumiaPay to process payments on their own marketplace, but independent businesses can also use the service.
Cashless payment options aren’t widespread yet in Africa, so this payment service can help facilitate cash payments.
Finally, Jumia offers logistics services to facilitate shipping and delivery.
Jumia’s stock price has remained very stable for the past several months, without much activity in either direction.
Expanding in Africa comes with a variety of logistical challenges, so it may take some time before Jumia stock delivers big returns.
This is a high risk e-commerce stock with potentially very high rewards as well.
Square (NYSE: SQ)
Square is a fintech company based in San Francisco.
Their products give small businesses an easy way to process payments from their customers.
The Square Reader and Square Stand turn tablets and smartphones into payment processing systems. They take Apple Pay and other contactless payments.
Over the past few years, Square has proven their ability to successfully expand their business, just as Amazon has.
They’ve launched the Cash App for peer-to-peer payments.
They’ve also launched Square Capital and Square Payroll, which offer business financing and payroll management.
They’ve also recently developed a Kitchen Display Software, which provides digital ticket timers and other kitchen tools.
As the COVID-19 pandemic comes to an end, restaurants are starting to open, which should create steady demand for this new product.
Square stock has had a meteoric rise over the past year.
This is a business that has the potential to continue expanding and growing for the future.
The stock has plenty of room to continue growing.
Airbnb (NASDAQ: ABNB)
Airbnb is a company that completely changed the travel industry.
They’ve developed a global marketplace for vacation rentals. The site also offers guided tours and experiences.
The company went public in December 2020, and there was plenty of hype leading up to their IPO.
Their stock price quickly rose to a peak in February, but has since dropped as tech stocks in general have corrected.
Since the COVID-19 pandemic is slowing in many countries, demand for travel is going up significantly.
This means there will likely be a significant increase in sales for Airbnb over the rest of the year.
However, revenue could continue to fluctuate over the next year. Localized outbreaks and the threat of new COVID-19 variants have resulted in renewed travel restrictions in some parts of the world.
This is to be expected, but shouldn’t affect the company too much in the long run.
Airbnb offers unique lodging options that are hard to find anywhere else.
It has put pressure on the hotel industry in a way that other travel companies haven’t quite managed to do.
Their market share and unique business model make them a long-term stock pick that could offer huge returns in the future.
Also Read: Motley Fool Rule Breakers Review
So, What Is The Next Amazon Stock?
The unpredictable nature of Wall Street means it’s virtually impossible to determine exactly what the next Amazon stock could be.
Many expert investors also have differing opinions, which means that there isn’t currently a consensus opinion about which stocks could become the next Amazon.
However, there are certain characteristics to watch for that indicate that a company has the potential to scale and grow the way that Amazon has.
One of the most important of these characteristics is the ability to scale their business in a way that sets them up for future revenue growth.
One of the things that has made Amazon so successful is that they have been able to expand their business to cater to a very wide variety of customers.
They are best known for their delivery services, but they also offer web hosting through AWS, sell groceries through Whole Foods, develop popular movies and TV shows, and sell their own technology products.
They were able to scale their business even more during the COVID-19 pandemic last year.
They did this by adapting to customers’ changing needs.
Companies that have the ability to adapt quickly are more likely to stay relevant in a rapidly changing economy.
In addition to looking at a company’s business model, you may also want to look for stocks that currently have a relatively small market cap.
A smaller market cap means more potential for massive returns in the future as the company gains value.
If a company’s market cap is already too large, there’s not as much room for it to grow.
Should You Buy The Next Amazon Stocks?
There’s a reason why the investments on this list have been touted as the next Amazon – investors around the world have seen potential in both their business model and their finances.
Whether these companies actually see the same growth as Amazon has yet to be seen.
However, they have the fundamentals of a good long-term investment, making them a good option to add to your portfolio.
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Next Amazon Stock: Final Thoughts
Amazon’s meteoric rise has been studied by stock market experts and entrepreneurs alike.
There’s huge potential in some of these up-and-coming companies to reach the same level of success in the future.
Investing in them while they are still affordable could set you up for very strong returns in the years to come.
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