Amazon.com, Inc. (NASDAQ:AMZN) promoted a business that surpassed $10 billion in annual revenue last year

Amazon.com, Inc. (NASDAQ:AMZN) promoted a business that surpassed $10 billion in annual revenue last year

Amazon.com, Inc. (NASDAQ:AMZN) promoted a business that surpassed $10 billion in annual revenue last year

Amazon’s advertising business, once a niche part of the company’s sprawling empire, is now big enough to merit its own conference.

Last week in Seattle, Amazon attracted roughly 400 people to “AdCon 2019,” CNBC has learned. The inaugural two-day event featured the company’s most senior ad executives and sessions to educate businesses on “how to use Amazon Advertising to create connections with shoppers at key moments across the purchase journey,” according to a page for the conference on events site Cvent.

Amazon’s ad unit, which makes money by charging brands to promote their products across Amazon properties in a variety of ways, topped $10 billion in annual revenue last year, and eMarketer predicts that, in 2020, it will account for 10% of U.S. digital ad spending. That puts Amazon third, behind only Google and Facebook, which control a combined 60% of the market.

More than being a revenue driver, advertising is a major profit center for Amazon. While Amazon doesn’t currently disclose its profitability, Piper Jaffray estimates the ad business will surpass Amazon Web Services in 2021 as the company’s main profit engine.

The invite-only conference included case studies from brands like mattress company Tuft & Needle and pet food provider I and Love and You. There were recommendations for reaching new customers, techniques for using sponsored ads and breakout sessions on best practices for hardlines (electronics, appliances), softlines (clothing, linens) and consumables.

“We will share learnings and best practices that will help you plan and execute to achieve your business objectives,” the site said.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 1,811.33.

The projected upper bound is: 1,774.42.

The projected lower bound is: 1,628.32.

The projected closing price is: 1,701.37.

Candlesticks

A black body occurred (because prices closed lower 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 21 white candles and 29 black candles for a net of 8 black candles.

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 60.1619. This is not an overbought or oversold reading. The last signal was a buy 5 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 35.69. 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 -91. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 11 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed down -27.150 at 1,705.510. Volume was 23% below average (neutral) and Bollinger Bands were 5% narrower than normal.

Open     High      Low     Close     Volume___
1,722.4901,727.0001,705.0001,705.510 2,626,840
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1,732.06 1,791.18 1,782.85
Volatility: 20 26 33
Volume: 3,124,887 3,336,239 4,297,190

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 4.3% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of AMZN.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AMZN.O and have had this outlook for the last 7 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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