Amazon Liked This Company so Much It's Copying It – Find Out if It's Worth Owning
Imitation is the sincerest form of flattery, and when Amazon.com Inc. (AMZN) imitates a company, that company knows it must be doing something right.
The company in question is a fellow e-commerce company, but it focuses on small- to medium-sized businesses, a market that LikeFolio's Vice President of Research Megan Brantley believes Amazon may have been ignoring.
Amazon is attempting to make up for that oversight by launching “Buy with Prime,” a feature that will allow merchants to sell outside Amazon's marketplace but still use its payment and delivery services, giving businesses a more direct way to connect with consumers.
But as an imitator, not an originator, of this idea, Amazon lacks the first-mover advantage. And the company that claims that distinction has already become the biggest e-commerce software provider in the United States.
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This company provides merchants with the ability to build their own online store without any coding knowledge, allowing them to get up and running quickly and connect with potential buyers all over the world.
Since 2018, it's racked up massive year-over-year (YoY) revenue growth:
Year
Revenue
YoY Revenue Growth Percentage
2021
$4.6 billion
57.43%
2020
$2.92 billion
85.63%
2019
$1.57 billion
47.05%
On top of that, Megan's research found a 12% YoY increase in consumer purchase intent mentions (when a person mentions on social media that they either intend to buy or recently bought a product/service).
Yet, as you can see from the green purchase intent mentions line and the white stock price performance line, there is divergence.
Like many tech stocks, this company's stock was punished over the last year, but the increase in purchase intent mentions could indicate that this is a case of the stock being oversold.
So, what we have here is:
A company that has increased revenue by an average of 63% YoY since 2019.
A company that offers a service Amazon must think is lucrative enough to compete with.
A stock price that is down while consumers are talking even more about this service than they were the year before, as measured by consumer purchase intent mentions.
And in less than seven minutes, Megan can tell you everything you need to know about this company.
Enjoy your Monday,
Keith Kaplan CEO, TradeSmith
P.S. The information shared in today's TradeSmith Daily boils down to one simple investing concept: finding signals that everyone else is missing.
When you know what to look for, you can gain that first-mover advantage.
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Some of these signals that I've found are a part of a massive new millionaire-minting project.
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TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results.
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