Investors, however, are concerned about the company’s margins. Will outlays such as the Kiva purchase hurt the bottom line near-term?
“Every quarter, the stock whips around based on what the margins look like. But we try not to play the guessing game quarter to quarter,” said Schachter.
Short-term the purchase may pose a risk, he says, but over the long-term “building out the ability to sell more goods will drive margins.”
Without offering a price target on the stock, which hovered around $205 on Tuesday, Schachter said he is bullish on the name.
“We still think Amazon has room to grow, because if you are selling something, you’ll be able to outsource all of your fulfillment needs to them, and sell it through their site,” he said.
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Ben Schachter does not personally own AMZN stock.