Amazon shares have doubled since our analyst Giles Tulloch wrote his insight, Keep Calm and Carry on Clicking, in November of last year and we got into an argument about the quality and value of the company with the Financial Times’ Lex column. A year on he looks at the incredible progress Amazon has made and why we think they are only getting started.
It has been a year since we urged people to “keep calm and carry on clicking”over nervousness about Amazon’s wilting share price. Writing a year later, market sentiment could not be more different. Amazon shares have been on “Fire” throughout 2015—the price has more than doubled.
E-Commerce was in the headlines as the rush began on Black Friday and continued throughout December as Christmas shopping began in earnest. Adobe Digital Index reported 17% growth (Adobe measures 80 of the top 100 online retailers in the United States) in online sales for the Cyber 5 period (Thanksgiving Day through Cyber Monday). At the same time, ShopperTrak reported a 10% decline for brick-and-mortar sales during the four days from Thanksgiving Day. The divergence was expected of course—E-commerce is gathering momentum at the expense of traditional in-store shopping—but the extent is still shocking.