The stock price for Amazon.com, Inc. (NASDAQ:AMZN) hit an all time high of $408.06 back on January 22, of this year. This equity was considered to be the teflon play on Wall St. It seemed like anybody who tried to short it was met with a rude awakening, as the share price just kept climbing higher. Anyone who ever tried to come up with a fundamental case against its valuation, was also made to look foolish. However, 2014 has not been so kind to Amazon.com, Inc. (NASDAQ:AMZN). After making a peak earlier this year, the share price came off in a big way, and the darling status that had once surrounded Amazon was a distant memory. All the bears came out of the woodwork and it seemed like everyone who had been giving CEO, Jeff Bezos a pass in the past, was quick to start criticizing his every move. The negative sentiment actually pushed AMZN well into bear market territory, as it tumbled 30% from its highs! On May 9 2014, the stock hit a low $284.38, and has had quite a move higher. Since that low was made, AMZN shares have actually gained about 20%. That is a healthy increase for any investment, but the best might be yet to come. As a professional trader who uses technical analysis for a living, I look at the AMZN chart and there is a very interesting pattern forming on the weekly time frame. This pattern is known in the technical world as a "head and shoulders pattern." Now this trade has not triggered yet by confirming the pattern (confirmation is what the smart trader will wait for before acting on this pattern. Far too often the amateur will enter before the pattern has confirmed - save your money and learn confirmation which is a proprietary tool of the PPT Strategy), but if it does, Amazon.com, Inc. (NASDAQ:AMZN) stock could get bid back up to all time highs with a target of $450. So while a 20% gain is nothing to snicker at, the real move higher to make money is yet to come. Parm Mann Elite Round Table Follow me on twitter: @ParmMannTrader
Doesn't it concern you that AMZN is making lower and lower highs while the market rallies? To me, this is a major warning sign. I have been long Amazon in the past, but that pattern is keeping me away until I see it retake and hold at least one of the prior highs.
Well recently AMZN has made a higher low. The pattern I have shown is an Inverse head and shoulders. Any close above the neckline and this pattern triggers with a target of around $450. Once triggered any close back below the neckline and you stop out.
So Amazon was around $408.06 back in January and then went down to $284.38 which is low. So if Amazon's goal is to get to $450 they need to get on the ball and not lose any more money.
Amazon recently bought Twitch.tv, which was being rumored to have Google interested in purchasing it, so either Google backed down or Amazon flexed some serious muscle to make the almost $1 billion buyout. I think Amazon's future is very much tied to what they do with Twitch, $1 billion is a very serious investment.
$1 Billion isn't that big of an investment. Yahoo! purchased Tumblr for a billion and then hasn't done anything profitable with that acquisition yet. Google paid more for Motorola Mobility, which doesn't impact the company's bottom line that much at all. Larger corporations paying $1 billion for a company isn't that big of a deal any longer, and Amazon is probably going to ruin Twitch anyways. Amazon's got bigger issues to deal with than trying to turn Twitch into a highly profitable website and content delivery platform.
What makes Amazon successful is its reputation for being on time with delivery and taking shipments back. Ads are constantly shown here about their 24 hour take back service if you don't want the item .
Even if 1 bln isn't that big of an investment, still i'm expecting to see a rise in their stocks. They have great reputation, and I'm sure they'll manage to get to their 450 goal.
The twitch.tv purchase is very interesting because it gives Amazon another channel to advertise and promote the games they sell lots of copies of all year-round. Will the service be integrated into Amazon's API? I think seeing how Yahoo's handling of Tumblr has scared companies away from trying to rebrand and reconfigure the hot web apps and sites that they have purchased. The fact that Google was rumored for a long time makes this purchase way more interesting as there is certainly value. Of course, there are thousands of streams with millions of users daily on twitch on a variety of games both old and new, and I am anxious to see how Amazon harnesses this large user base of users who STRICTLY consume content (the creators are the streamers who take their time to record and share these videos but they are in the majority compared to the eyeballs who watch these videogame streams)
I think when looking at Amazon, we should also take time to look at it from a cultural aspect, not just numbers. What we are seeing in numbers currently started several years ago when online retailers, small and big, started creating their own web stores and etc. I know many people who would rather shop at their online-retailer of choice than at Amazon. Before that they were huge Amazon fans. Trends change, especially online ones. I think MySpace was the best example of this. With all that said, I still have hopes for Amazon.
