Four Retail Stocks Investors Should Consider for Long-Term Holding
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: Fool
- Amazon's Market Dominance: Amazon captures about 40% of all e-commerce spending in the U.S., and its extensive logistics network and fast, free shipping services ensure its lasting success in the retail market, making it an attractive option for long-term investors.
- Walmart's Sales Growth: Walmart achieved $706 billion in net sales for fiscal 2026, and despite economic challenges, its e-commerce sales grew by 24% in the fourth quarter, demonstrating its ability to adapt to market changes and boosting investor confidence.
- Costco's Membership Model: Costco generated $68 billion in net sales in the second quarter of fiscal 2026, and its membership-based business model not only provides a high-margin recurring revenue stream but also fosters customer loyalty, with plans to open 30 new stores annually, showcasing strong growth potential.
- Home Depot's Long-Term Potential: Although Home Depot faces sluggish sales growth, its leadership in the home improvement industry and the untapped home equity in the U.S. provide financial resources for necessary projects, attracting investors looking for blue-chip stocks.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 209.530
Low
175.00
Averages
280.01
High
325.00
Current: 209.530
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Investment Scale Expansion: Amazon announced an increase in its investment in Spain from the original 2024 plan by €18 billion, bringing the total to €33.7 billion, aimed at expanding data center infrastructure and supporting cloud and AI capabilities, marking its largest tech investment in the country to date.
- Significant Economic Contribution: This investment is projected to contribute €31.7 billion to Spain's national GDP and create approximately 29,900 full-time equivalent jobs annually, including 6,700 direct positions in data center operations and technical roles, further driving local economic development.
- Community Development Initiatives: Amazon plans to invest €30 million in various community programs across Spain over the next decade, focusing on education and local development, aiming to enhance the company's social responsibility image in the region.
- Supply Chain Facility Construction: Amazon is building specialized supply chain facilities in Aragón, expected to create around 1,800 local jobs, including a server manufacturing plant and facilities for the manufacturing and repair of AI and ML servers, further strengthening its data center infrastructure support across Europe.
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- Amazon's Market Dominance: Amazon captures about 40% of U.S. e-commerce spending, leveraging its extensive logistics network and fast, free shipping to ensure sustained success in online shopping, indicating strong growth potential ahead.
- Walmart's Sales Growth: Walmart achieved $706 billion in net sales for fiscal 2026, and despite a slow initial adaptation, its e-commerce sales surged 24% in Q4, demonstrating its ability to attract customers even during economic downturns.
- Costco's Membership Model: Costco generated $68 billion in net sales in Q2 of fiscal 2026, and its membership-based business model not only provides a high-margin revenue stream but also encourages frequent shopping visits, enhancing customer loyalty, with plans to open 30 new stores annually showcasing robust growth potential.
- Home Depot's Long-Term Potential: As the leader in the home improvement industry, Home Depot faces sluggish sales growth; however, the aging housing stock and significant untapped home equity in the U.S. provide financial resources for necessary maintenance and upgrades, indicating a strong investment outlook for the future.
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- Surge in Carbon Credit Purchases: Since the launch of ChatGPT in 2022, Amazon, Google, Meta, and Microsoft have ramped up their permanent carbon credit purchases from 14,200 to 11.92 million in 2023, indicating a strong commitment to net-zero goals despite sustainability concerns raised by AI's energy consumption.
- Future Spending Expectations: These tech giants are projected to spend nearly $700 billion on AI infrastructure in 2023, driving sustained demand for carbon credits and reflecting a focus on long-term climate strategies, even as achieving net-zero emissions poses significant challenges.
- Microsoft's Market Leadership: Microsoft stands out with a notable increase in carbon credit purchases, reaching 5 million in 2023, a 247% rise from 2022, and is expected to grow to 21.9 million in 2024, showcasing its pioneering role in the carbon removal market.
- Sustainability Strategy: While Big Tech's active carbon credit purchases are evident, experts highlight a contradiction with their aspirations to build more sustainable infrastructure, emphasizing the need for more effective long-term solutions to address climate change.
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- Surge in Carbon Credit Purchases: Amazon, Google, Meta, and Microsoft increased their permanent carbon credit purchases from 14,200 in 2022 to 11.92 million in 2023, reflecting an 8,300% growth driven by the environmental impact of AI expansion.
- Future Spending Expectations: The four companies are projected to spend nearly $700 billion on AI-related infrastructure in 2023, driving demand for carbon credits and highlighting their commitment to sustainability amidst challenges.
- Microsoft's Market Leadership: Microsoft stands out with a significant increase in carbon credit purchases, reaching 5 million in FY 2023, a 247% rise from the previous year, and is expected to reach 21.9 million in FY 2024, solidifying its position as a leader in the carbon removal market.
- Sustainability Challenges: Despite commitments to net-zero emissions, the surge in energy demand from AI poses challenges to achieving these goals, with experts noting that carbon removal technologies are crucial for meeting such targets.
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- Amazon's Market Dominance: Amazon captures about 40% of all e-commerce spending in the U.S., and its extensive logistics network and fast, free shipping services ensure its lasting success in the retail market, making it an attractive option for long-term investors.
- Walmart's Sales Growth: Walmart achieved $706 billion in net sales for fiscal 2026, and despite economic challenges, its e-commerce sales grew by 24% in the fourth quarter, demonstrating its ability to adapt to market changes and boosting investor confidence.
- Costco's Membership Model: Costco generated $68 billion in net sales in the second quarter of fiscal 2026, and its membership-based business model not only provides a high-margin recurring revenue stream but also fosters customer loyalty, with plans to open 30 new stores annually, showcasing strong growth potential.
- Home Depot's Long-Term Potential: Although Home Depot faces sluggish sales growth, its leadership in the home improvement industry and the untapped home equity in the U.S. provide financial resources for necessary projects, attracting investors looking for blue-chip stocks.
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- Palantir Revenue Surge: Palantir's fourth-quarter revenue skyrocketed 70% year-over-year, accelerating from 63% growth in Q3, showcasing the company's strong performance in AI, yet with a market cap exceeding $360 billion and a P/E ratio of 240, investors should proceed with caution.
- Amazon Cloud Growth: Amazon's fourth-quarter net sales increased 14% year-over-year to approximately $213 billion, with AWS revenue rising 24% to $35.6 billion, indicating that AI demand is driving accelerated growth in its cloud computing business.
- Capital Expenditure Plans: Amazon is committing about $200 billion in capital expenditures for 2026, which could impact margins in the short term, but its AI chip business boasts over $10 billion in annualized revenue with triple-digit growth rates, indicating long-term potential.
- Risk-Reward Comparison: While Palantir's growth is impressive, its high valuation demands sustained perfect execution, whereas Amazon offers a more attractive investment opportunity with a P/E ratio of about 29, presenting a more reasonable risk-reward profile.
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