Amazon's Stock Surges To Record High As 'retail Dominance' Drives Investor Interest

Shares of Inc. surged 1.6% in midday trade Wednesday, toward its first record close this month, as investors continued to bet on the ecommerce giant's dominance over its retail peers. Since Feb. 3, when the stock tumbled 3.5% after disappointing fourth-quarter results, the stock has run up 7.3%, while the SPDR S&P Retail ETF has shed 1.8% and the S&P 500 has edged up 2.7%. Analyst Rob Sanderson at MKM Partners said he believes Amazon's stock has been outperforming because its "retail dominance" is driving investor interest. "We think this reflects a challenging environment for traditional retailers and money flow from consumer retail as conclusions of fundamental analysts increasingly point them toward Amazon," Sanderson wrote in a recent note to clients. "We continue to view Amazon as the best long-term growth story available to investors today." Amazon's stock rally Wednesday comes in the wake of data showing consumer confidence soaring in March to the highest reading in 16 years. Basically, investors are recognizing that consumers are willing to spend, just not at traditional retailers.

Copyright © 2017 MarketWatch, Inc.