I have searched high and low for a reason to not like Amazon, and I can’t find it, says trader

Amazon hit all-time highs yet again on Wednesday, continuing a monster rally that has Blue Line Futures president Bill Baruch betting the stock could surge another 5 percent.

"I have searched high and low for a reason to not like Amazon, and I can't find it," Baruch said Tuesday on a "Trading Nation" segment for "Power Lunch." "Ultimately, I think this run here could test $1,600. I think that's really the next push."

And what could be the main driver of this next leg up? The company's dedication to innovation, says the trader.

"They already own about 18 percent of the share of online grocery shopping, so that's going to continue," Baruch added. "Online grocery shopping in general is going to continue. They've redefined the supply chain management and they're going to continue to grow."

On Tuesday, reports circulated that Amazon would acquire smart doorbell-maker Ring for more than $1 billion. The deal would mark Amazon's second-biggest acquisition ever. The company's almost $14 billion purchase of Whole Foods back in June is still the largest.

Chantico Global CEO Gina Sanchez expects many more deals for Amazon down the pike. "They went into web services, and they just signed a deal with Lionsgate, that's a lot of different things," she said. "And they're getting into higher and higher margin areas, and I do think that's also important."

"Don't underestimate the innovation that's happening in Amazon because they're slowly and very surely crushing a lot of their competition," she added.

Amazon was trading at around $1,517 on Wednesday, up about 30 percent year to date.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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