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Amazon
Ticker: NASDAQ:AMZN
Price: $3190.55
Amazon News
In the six years since Amazon held its first Prime Day, the marquee shopping event has always been held in mid-July as an attempt to drum up sales during the sluggish summer season.
But on Tuesday, when the two-day event kicks off, Amazon will see whether it can successfully push consumers to search out deals more than a month before the holiday shopping season traditionally begins.
The company pushed back its annual discount shopping event from mid-July to Oct. 13 and Oct. 14 after the coronavirus pandemic generated unprecedented strain on its fulfillment and logistics operations. Facing a deluge of online orders, Amazon quickly began to run out of stock of items on its site and couldn’t meet its vaunted Prime two-day delivery window.
Over the ensuing months, Amazon worked to return conditions in its warehouses to normal by prioritizing shipments of essential goods. It brought on 175,000 new warehouse and delivery workers to help shoulder the load. Amazon kept more than 70% of the employees it added, signaling that online orders continue to flood in long after the panic buying tapered off.
For shoppers, Prime Day may overshadow this year’s Black Friday and Cyber Monday, with 67% of U.S. shoppers planning to make a purchase during the event this year, according to a RetailMeNot survey of over 1,000 consumers.
Amazon’s decision to hold Prime Day so close to the holidays, or even at all this year given the coronavirus-related constraints, is a testament to its importance to the company, said Bernie Thompson, a 10-year seller on Amazon and founder of electronics company Plugable Technologies.
Bracing for chaos
With Prime Day set to kick off soon, it’s not just warehouse workers who are bracing for an onslaught of online orders.
The millions of third-party sellers that make up Amazon’s marketplace will also be running discounts on their products, which run the gamut from used electronics and custom T-shirts to pet supplies. The group is of growing importance to Amazon, accounting for 58% of the company’s total merchandise sold.
With little time to prepare, some merchants are only running a few Prime Day discounts and plan to offer deals throughout the holiday shopping season. Boyce and Thompson said sellers are also approaching Prime Day cautiously due to recently announced inventory limits in Amazon’s warehouses.
In July, to conserve space, Amazon said it would start limiting the amount of goods third-party sellers can send into its warehouses. All product categories are affected by the change, with quantities differing on a product-by-product basis.
Amazon has been working closely with third-party sellers ahead of Prime Day and is making sure it has enough space for sellers to store their products in its warehouses, said Jamil Ghani, Amazon’s vice president of Prime, in an interview with CNBC in September. “We’ve been making changes to our logistics and supply chain to adapt to an ever-evolving situation,” Ghani added.
The quantity limits only impact third-party sellers who use Fulfillment by Amazon (FBA), which is the company’s program that lets sellers ship their products to an Amazon warehouse and then Amazon ships the product to customers for a cut of each sale. Sellers also store goods in their own warehouses and manage fulfillment, but the majority of Amazon’s top third-party merchants in the U.S. use FBA for their orders.
Even with the new limits, most products will have enough space available for over three months of sales, which is more than many sellers require, given that most sellers carry about 1.5 months of inventory in Amazon’s facilities, the company said. If sellers run out of stock, they can send in new inventory any time, Amazon added.
Amazon said it has also reduced its own retail product ordering to accommodate more products from third-party sellers in FBA warehouses.
Business Summary
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.
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Upwards.
The projected upper bound is: 3,414.33.
The projected lower bound is: 2,973.06.
The projected closing price is: 3,193.69.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 52.5657. This is not an overbought or oversold reading. The last signal was a sell 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 52.08. 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 24 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 85. This is not a topping or bottoming area. The last signal was a sell 4 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 8 period(s) ago.
Rex Takasugi – TD Profile
AMAZON COM closed down -5.140 at 3,190.550. Volume was 35% below average (neutral) and Bollinger Bands were 30% narrower than normal.
Open High Low Close Volume 3,224.990 3,233.294 3,174.990 3,190.550 3,174,114
Technical Outlook Short Term: Overbought Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 3,159.45 3,197.17 2,511.25 Volatility: 42 44 48 Volume: 4,416,963 4,812,952 5,047,852
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 27.1% 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 19 periods.
Amazon (NASDAQ:AMZN) Stock Ready to Explode or Crash? added by HEFFX on
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