Amazon.com, Inc. (NASDAQ:AMZN) cloud services business has $30 billion of revenue run rate in the early stages of adoption in the United States

Amazon.com, Inc. (NASDAQ:AMZN) cloud services business has $30 billion of revenue run rate in the early stages of adoption in the United States

Amazon.com, Inc. (NASDAQ:AMZN) cloud services business has $30 billion of revenue run rate in the early stages of adoption in the United States

Amazon’s cloud services business has been growing exponentially, but the company still has a long way to go, the division’s CEO Andy Jassy told CNBC’s Jim Cramer on Thursday.

With $30 billion of revenue run rate and 45 percent year-over-year growth, Amazon Web Services is just getting started, he said.

“It’s the early stages of the meat of early enterprise and public sector adoption in the U.S.,” Jassy said. “Outside the U.S., they’re 12 to 36 months behind, depending on the country and industry. So it’s still really early days.”

Amazon took a lead in the cloud space because the company has been able to scale its service and cut costs for clients who opt for the platform over building out their own system, he said. It takes a ton of time and capital to build a data center, but AWS offers “speed and agility,” he said.

Companies looking to experiment with their own cloud system could wait as much as 12 weeks to receive a server before it can build the software around it, Jassy said. That created a customer base for Amazon.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1,762.28.

The projected lower bound is: 1,519.30.

The projected closing price is: 1,640.79.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 68.3551. This is not an overbought or oversold reading. The last signal was a sell 26 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.32. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 43 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 104.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -1.260 at 1,639.830. Volume was 55% below average (consolidating) and Bollinger Bands were 66% narrower than normal.

Open High Low Close Volume___
1,635.2501,651.7701,633.8301,639.830 3,025,891

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,628.16 1,600.29 1,725.17
Volatility: 12 50 45
Volume: 3,408,824 6,117,337 5,531,376

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

AMAZON COM is currently 4.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of AMZN.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AMZN.O and have had this outlook for the last 7 periods.

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