Adam Seessel: ‘Amazon is an inevitable stock for the next 10 to 15 years’
- Gravity Capital founder says no one can match Amazon in eCommerce.
- He's convinced AMZN will generate enormous returns in the long term.
- Shares of the tech giant are down roughly 35% versus the start of 2022.
Amazon.com Inc (NASDAQ: AMZN) is down roughly 35% for the year, but Adam Seessel remains convinced it’s one of the “superior businesses” that’s bound to eventually win.
Seessel made a bull case for AMZN on CNBC’s ‘Squawk Box’
The Founder of Gravity Capital Management drives his optimism from the unmatched dominance Amazon has in the eCommerce space. This morning on CNBC’s “Squawk Box”, he said:
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No one is going to catch Amazon in eCommerce. It has about a 50% market share in eCommerce. Walmart tanked their margins a few years ago to try to get into eCommerce. They have a 7.0% market share only.
Amazon is as exposed to the ongoing macro headwinds as a company can be. Consequently, the American multinational reported weak results for its fiscal Q1 in April and gave disappointing guidance for the future.
Amazon could generate enormous returns in the long term
Over the long term, however, its eCommerce and cloud businesses together will generate lucrative returns for the shareholders, Seessel added.
When you think about Amazon can grow in eCommerce and Cloud 15% to 20% a year for 15 to 20 years, the internal rate of return over three, five, ten years is pretty enormous. So, I think AMZN is an inevitable stock for the next 10 to 15 years.
The eCommerce giant is scheduled for “Prime Day” next month. The annual sale will commence at 3 a.m. Eastern Time on July 12th and will last for 48 hours. Wall Street, on average, sees a 60% upside in Amazon stock.