Amazon.com, Inc. (NASDAQ:AMZN) market share is still increasing

Amazon.com, Inc. (NASDAQ:AMZN) market share is still increasing

Amazon.com, Inc. (NASDAQ:AMZN) market share is still increasing

Amazon’s market share didn’t just plummet out of nowhere. eMarketer merely overestimated Amazon’s historical sales, so it went back and updated those numbers based on the data Bezos provided in his letter to shareholders.

Amazon’s share of online sales continues to climb under eMarketer’s new estimates. It’s gone from about 32% of the market in 2016 to 38% this year. That’s despite facing intense and fast-growing competition from brick-and-mortar stores moving into the online space during that period.

Walmart (NYSE: WMT) has notably invested significant amounts in growing its online sales and it’s certainly struck a chord with its online grocery platform. Digital sales for Walmart U.S. grew 40% last year and climbed another 37% in the first quarter.

Walmart’s even managed to attract a significant percentage of Prime members to its digital platform. But Walmart’s market share of online sales in the U.S. will climb to just 4% this year, up from 3% in 2016, according to eMarketer.

Amazon might be growing sales more slowly than its competitors, but it’s growing off such a massive base that it continues to grab market share within the industry.

Lower market share looks better in an antitrust case

Amazon is happy to downplay its market dominance at a time when antitrust investigations are looming around it and several other big tech players. Indeed, Bezos stressed Amazon’s relative size in retail in his letter. “Amazon today remains a small player in global retail,” he wrote. “We represent a low single-digit percentage of the retail market, and there are much larger retailers in every country where we operate.”

eMarketer’s numbers corroborate Bezos’ story. The analysts estimate Amazon’s market share of combined online and in-store retail in the U.S. is less than 5%.

Regulators are concerned that too much concentration in the market by Amazon would make it impossible for others to compete with their own retail operations, whether that’s first-party sales or a third-party marketplace. It might also give Amazon too much buying power in the industry, forcing lower margins for small vendors — something it’s already started doing .

Downplaying how big Amazon’s presence is in the online market could help stave off antitrust regulations. But if Amazon continues to grow like it has, it’s bound to stay in the minds of those on Capitol Hill looking for anti-competitive practices.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,971.60.

The projected lower bound is: 1,803.15.

The projected closing price is: 1,887.37.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 78.1455. This is not an overbought or oversold reading. The last signal was a sell 1 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 58.65. 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 9 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 96. This is not a topping or bottoming area. The last signal was a sell 3 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 5 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 16.360 at 1,886.030. Volume was 38% below average (neutral) and Bollinger Bands were 32% wider than normal.

Open High Low Close Volume___
1,876.5001,895.6881,875.4501,886.030 2,634,342

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,823.21 1,859.47 1,749.43
Volatility: 22 29 46
Volume: 3,878,977 4,242,103 5,664,856

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 7.8% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 24 periods.

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