Now’s the time to buy Amazon stock, Bruce Murray says

October has been less than kind to tech sector stocks, as witnessed by Amazon (Amazon Stock Quote, Chart: NASDAQ:AMZN) which is now down 13 per cent for the month and 14 per cent off its all-time high set in early September. But for savvy investors, the pullback should represent a buying opportunity, says portfolio manager Bruce Murray, who thinks there’s no stopping the e-commerce giant.

Ahead of Amazon’s third quarter report due after market close on October 25, shareholders are hoping for a repeat of Q2 which featured revenue growth of 39 per cent to $52.9 billion and an earnings per share of $5.07, more than double the consensus expectation of $2.50 (all figures in US dollars).

Whether Amazon can match those numbers with its Q3 is the burning question, although a slowdown in its Prime membership growth might be taken as a negative and investors could be quick to interpret anything but a strong consensus beat on earnings as a warning sign.

But there’s no reason to doubt the company’s continued success, says Murray, CEO and CIO at Murray Wealth, who sees Amazon racking up wins for years to come.

Amazon stock a buy, Murray says

“I would buy Amazon here,” says Murray to BNN Bloomberg. “Amazon is for a very growth-oriented investor who’s looking deep into the future.”

“Amazon is still rolling up industry after industry after industry,” he said. “They obviously have the formulas to do this. Anytime you have executives who are able to drive companies — Apple, Amazon, Microsoft — you know, Jeff Bezos is still relatively young, he’s probably got 25-30 years left in his own career and I think he’ll drive Amazon to heights we have yet to see.”

“It’s rolling up businesses by creating new ways of marketing them. It’s just an amazing job,” Murray says.

As reported in the Wall Street Journal today, Amazon’s hunt for a second headquarters could be rounding the home stretch, as the company has reportedly been meeting again with some of the 20 finalists, including New York City, Newark, New Jersey, Chicago, Miami and Washington, DC. This past January, Amazon narrowed down the field of applicants to 20, with Toronto, Ontario, making the finals. Meanwhile, the company’s international expansion continues, as it announced today plans to open a new office in Manchester, UK, and hire another 1,000 employees for its UK operations.

Disclosure: Both Nick Waddell and Jayson MacLean of Cantech owns shares of Amazon.