It’s time to answer the $64,000 question: Is Amazon still a buy?
Without a doubt, I believe Amazon remains a top stock to buy.
While no company is without risks, Amazon’s clear-cut dominance is too impressive to overlook. From its share-leading online marketplace to its superior logistics, retailers in the U.S. are going to have a difficult time competing with Amazon and luring away its users. Even if retail margins are razor-thin, the company is more than happy to keep users loyal to its brand for the long run.
I’m also very excited about the potential of AWS to triple Amazon’s operating cash flow per share over the next three years. Since Amazon is more aptly valued by its cash flow than traditional earnings metrics like the price-to-earnings ratio, its respective valuation is a lot more attractive than most folks might otherwise realize.
Though it’s probably not going up another 1,670% over the next decade, Amazon’s continual outperformance suggests it has plenty of additional upside.
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: Sideways.
The projected upper bound is: 3,316.75.
The projected lower bound is: 2,884.34.
The projected closing price is: 3,100.55.
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.
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 26.4013. This is not an overbought or oversold reading. The last signal was a sell 8 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 44.11. 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 68 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 1 period(s) ago.
Rex Takasugi – TD Profile
AMAZON COM closed down -2.710 at 3,101.490. Volume was 100% below average (consolidating) and Bollinger Bands were 62% narrower than normal.
Open High Low Close Volume 3,088.990 3,142.100 3,076.000 3,101.490 3,817
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 3,167.73 3,184.47 2,781.39 Volatility: 19 43 49 Volume: 3,007,839 4,614,111 5,130,807
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 11.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
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 3 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.