$AMZN #Amazon #OnlineShopping #USA #Nasdaq #Stocks #Trading
Amazon.com Inc. reported record quarterly sales Thursday and has already reached a record profit total in 2020 amid ramped-up pandemic spending, and it still has another three months to go that include Prime Day as well as the traditional winter holidays.
In total, Amazon has already collected more profit in the first nine months of 2020 than it did in all of 2019, when Amazon had record earnings of $11.59 billion. Amazon has collected nearly that much profit in just the second and third quarters this year, and is pushing $14 billion in net income through three quarters.
Amazon has experienced a surge in usage amid the COVID-19 pandemic, as Americans and others worldwide facing shelter-in-place orders due to the spread of the coronavirus order essentials online. The company has expanded rapidly to address the needs, pushing its workforce to more than 1 million people.
For the fourth quarter, Amazon expects to blow away its quarterly record for sales, predicting revenue of $112 billion to $121 billion, while analysts had expected $112.66 billion on average.
Amazon stock declined about 1% in after-hours trading following the results Thursday, likely due to the only miss in the report, Amazon’s projection for fourth-quarter operating profit of $1 billion to $4.5 billion which undershot analysts’ average expectation of $5.81 billion.
However, Amazon has struggled to predict profit during the pandemic. The company forecast operating income of $2 billion to $5 billion for the third quarter in July, but reported $6.19 billion in operating income Thursday. After the first quarter, Amazon predicted second-quarter operating income would range from a loss of $1.5 billion to a gain of $1.5 billion, but it eventually reported operating income of $5.84 billion.
Amazon.com, Inc. offers a range of products and services through its Websites.
The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices.
It operates through three segments: North America, International and Amazon Web Services (AWS). Its AWS products include analytics, Amazon Athena, Amazon CloudSearch, Amazon EMR, Amazon Elasticsearch Service, Amazon Kinesis, Amazon Managed Streaming for Apache Kafka, Amazon Redshift, Amazon QuickSight, AWS Data Pipeline, AWS Glue and AWS Lake Formation.
AWS solutions include machine learning, analytics and data lakes, Internet of Things, serverless computing, containers, enterprise applications, and storage. In addition, the Company provides services, such as advertising.
It also offers Amazon Prime, a membership program that includes free shipping, access to streaming of various movies and television (TV) episodes.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 3,438.04.
The projected lower bound is: 2,982.00.
The projected closing price is: 3,210.02.
A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 56.2493. This is not an overbought or oversold reading. 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 49.58. 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 sell 39 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 -52. This is not a topping or bottoming area. The last signal was a sell 10 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.
Rex Takasugi – TD Profile
AMAZON COM closed up 48.230 at 3,211.010. Volume was 30% above average (neutral) and Bollinger Bands were 22% narrower than normal.
Open High Low Close Volume 3,201.270 3,257.250 3,164.000 3,211.010 6,596,529
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 3,212.98 3,226.87 2,615.76 Volatility: 34 45 48 Volume: 5,085,614 5,144,997 5,182,692
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.
AMAZON COM is currently 22.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on AMZN.O and have had this outlook for the last 13 periods.
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