Retail is inherently a low-margin business. And in times of rising inflation, profitability shrinks even more.
Amazon (AMZN) – Get Amazon.com Inc. report has never really struggled with rampant inflation. So we see a lot of fear and uncertainty among investors.
But fear and uncertainty often create the best opportunities.
Today the Amazon Maven gives its view on the macro scenario. Is the worst finally over? Will inflation continue for a long time? And more importantly, what does this mean for Amazon shareholders? Is the stock undervalued and should investors buy the price drop?
(Read more from Amazon Maven: Google Tries E-Commerce: Why That’s Good News for Amazon Shareholders)
Bullish prospects amid inflation
After the Federal Reserve last hiked interest rates by 50 basis points, JPMorgan’s wealth management division discussed a possible path for bulls in the stock markets.
Because our…