When Amazon.com Inc. (Nasdaq: AMZN) crossed the $1,000 mark on May 31, TV host Jim Cramer was quick to throw out what he called a “red flag.”
Frankly, I think he was waving a white one…
Here’s why I say that. The host of CNBC’s Mad Money mostly looked at the price of the stock. He said that “psychologically” $1,000 is a lot to pay for a stock he feels is getting ahead of itself.
That brought him around to saying that other big tech leaders are riding a secular trend that could lose steam, hurting investors along the way.
I believe Cramer’s analysis is way off the mark for a couple reasons. First, Amazon still has a long runway in both retail and its cloud sales, where it remains the dominant firm.
Second, and more to the point, I actually predicted back on Oct. 30, 2013 that Amazon would hit this milestone. I said it would be among the “next” members of tech’s “Thousand-Dollar Club.”
So, today I’ll show you why my forecast was on the money for all the stocks I put in that group.
And I’ll show how you can still profit from them…
It’s Fool’s Errand to Believe “$1,000 Club” Firms Are Done Growing
If you’ve followed along with me for any length of time, you’ll know that I’m more than willing to make bold calls.
Then again, I grew up in a military high tech household and have knocked around Silicon Valley for 33 years. I’m not saying that to brag but to point out that I have tons of personal experience to back up my rigorous tech analysis.
Now I have to admit, predicting that five tech leaders would each sell for $1,000 a share going on four years ago struck some as going way out on a limb.
However, I backed it all up with solid data that I said would drive the stocks to new heights. I also noted that at the time many thought The Priceline Group Inc. (Nasdaq: PCLN) was “pricey” because it sold for $1,075 a share.
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