Mark Cuban says Amazon stock will keep going ‘up up up’ because of behavior change during shutdown

Billionaire entrepreneur and investor Mark Cuban said Amazon shares will keep going higher even after a near 30% rally this year.

“I think it goes up, up, up, up, up,” Cuban said on CNBC’s Fast Money on Monday. “People who weren’t comfortable dealing with Amazon for consumables, for food, for produce even, I think they’ve gotten to that habit now…I think Amazon just takes off. The stock is only going to go up.”

Shares of Amazon rallied 29.6% in 2020 so far, compared to the S&P 500’s 17% loss, as the e-commence giant benefits from the stay-at-home trend amid the widespread government-mandated shutdowns to curb the coronavirus pandemic. The stock hit a record high last Thursday, among the firsts to fully make back the losses during the historic sell-off last month.

Cuban, the owner of the NBA’s Dallas Mavericks, said people will still be wary about going to physical stores after the reopening of the economy, which will be beneficial to Amazon, one of his core holdings.

“The greatest fear factor is going to be going back … to the small to medium-sized businesses because they don’t know what protocols they have in place to keep them as consumers safe,” Cuban said.

Amazon has hired more than 100,000 new warehouse and delivery workers since March to help manage the surge in orders, and it’s planning to bring on 75,000 more workers.

Cuban added he’s sticking to his other core holding Netflix, which rallied 16.5% this month alone and 31% this year.

Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank,” which features Mark Cuban as a panelist.

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