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Amazon(AMZN Quote) made its name selling books online, but like Google (GOOG Quote), it has become synonymous with the Internet revolution. An e-commerce trailblazer, Amazon is the poster child for online retail, leaving rivals such as eBay(EBAY Quote) trailing in its wake.
Even during the recession, when both online and brick-and-mortar retailers were diving for cover, Amazon grew its business. Crucial for investors, this momentum is expected to continue into 2010.
"This is one of the few large-cap companies in the tech space that will still grow significantly," Youssef Squali, an analyst at Jefferies & Company, told TheStreet. "We're expecting topline growth to accelerate from the mid-20s this year, in a bad economic environment, to about 30%."
During the third quarter, as U.S. consumers emerged bleary-eyed from the economic downturn, Amazon reported sales of $5.45 billion, an increase of 28% on the same period in 2008. Perfectly positioned to reap the rewards of holiday spending, the company is expected to go from strength to strength.
After growing more than 165% this year, Amazon's stock is on an upswing and the Seattle, Wash., firm is gearing up for a bumper 2010. Merrill/BofA recently increased its Amazon numbers through 2011, citing a continued shift toward online shopping this holiday season.
With impressive customer service, shipping and order fulfillment, Amazon has built a foundation from which to target new areas, including the launch of new technology, such as its popular Kindle e-book.
Solid fundamentals, though, will prove the biggest factor in Amazon's 2010, according to Squali.
"It's the way they are run," he said. "Their strategy is to offer the best user experience with the best price -- for the longest time that was missing from the majority of e-commerce players."
--Reported by James Rogers in New York
Next Top Tech Stock: Comcast
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