Amazon Investors Trust Their Management Like No Other Company

Investors need to trust the management team of companies they invest in, and this is perhaps the most apparent in Amazon.com, Inc. AMZN.

According to MKM Partners' Rob Sanderson, investors are placing a "high degree of trust" in Amazon, especially after the company reported a mixed fourth-quarter earnings print.

Nevertheless, the analyst agrees that the high level of trust in Amazon's management team led by its CEO Jeff Bezos is warranted for several reasons which were reinforced in the earnings report including: 1) Amazon's share gain versus traditional retailers, 2) the ramp of Fulfillment by Amazon (FBA), 3) continued growth of Prime memberships, 4) the company's aggressive investments in logistics and 5) Amazon's AWS segment being the best positioned company for growth within the IT sector.

So Now What?

Amazon's stock dipped to around the $800 mark after Amazon concluded its post-earnings conference call. The analyst believes the earnings report wasn't a "harbinger of worse days ahead," but it does reinforce ongoing concerns surrounding Amazon's aggressive spending and lack of predictability in margins.

However, Amazon is the "best long-term growth story available to investors today," and while the top-line and margin concerns could limit the stock's gain in the near term, the analyst maintains a Buy rating and $995 price target.