Amazon.com, Inc. (NASDAQ:AMZN) rarely mentions Whole Foods in earnings

Amazon.com, Inc. (NASDAQ:AMZN) rarely mentions Whole Foods in earnings

Amazon.com, Inc. (NASDAQ:AMZN) rarely mentions Whole Foods in earnings

Robb said on Yahoo Finance’s The First Trade that the Amazon deal for Whole Foods was a game-changer.

“The deal heralded as a proxy that integrated retailing is the future,” Robb said. “The customer is now in charge of what choices they make — they aren’t going to be told what foods to have or where they are going to shop. So that deal said unless you are willing to play in multiple channels, you are going to have a hard time growing.”

The only thing missing here coming up on the two-year anniversary of Amazon’s Whole Foods deal? Those 1,000 Whole Foods stores or any signs by Amazon management they see a path (or want to see a path) to reaching the mark.

Amazon rarely mentions Whole Foods on its earnings conference calls. The company has shuttered the 365 by Whole Foods concept. Whole Foods had about 470 stores at time of being acquired by Amazon, it now only has 500 locations (and most of those leases were likely signed before Amazon’s takeover).

When asked why Amazon has been slow to open more Whole Foods, Robb said it may just be a reality of the current digital shopping movement.

“It’s funny how that 1,000-store number came up. The company was doing, 20 to 25 new stores a year, but remember the world has changed because of Prime Now and these other delivery options the customer have,” Robb explained. “You take a physical store and extend their sphere of influence great. You see Walmart talking about this and Target talking about this. So the way you do retail now is different than just having physical stores.”

“The 1,000 stores are achievable,” Robb added.

Perhaps some day.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,950.18.

The projected lower bound is: 1,780.54.

The projected closing price is: 1,865.36.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 89.0719. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 55.77. 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 5 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 1 period(s) ago.

Rex Takasugi – TD Profile

AMAZON COM closed up 3.070 at 1,863.700. Volume was 9% below average (neutral) and Bollinger Bands were 38% wider than normal.

Open High Low Close Volume___
1,883.2501,893.7001,858.0001,863.700 4,042,694

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

Moving Averages: 10-period 50-period 200-period
Close: 1,785.41 1,855.20 1,750.37
Volatility: 43 29 46
Volume: 4,897,353 4,328,737 5,675,226

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 6.5% 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 20 periods.

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