Amazon To Rebound?

by Ian Harvey
August 25, 2019

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Will Amazon rebound? Very probably based on history, existing launches of products, the Hardware Event day, the Great Indian Sale, and many other catalysts; as well as the positivity of analysts.
But what are Stock options Made Easy members considering for a trade?
Find out here!

American multinational technology company Amazon, based in Seattle, Washington, has had a volatile run lately, down another 2.45% yesterday with its stock price sitting at $1,741.61 at market close. This pullback has come after Amazon.com, Inc. (NASDAQ: AMZN) touched a record high of $2,035.80 this past July. Even so, AMZN stock has added 32% over the past nine months.

YOU NEED TO BE IN TO PROFIT!

Now with the stock's recent pullback, this may be a buy signal for AMZN traders, as Amazon’s stock may be ready for its next surge higher.

AMZN stock has pulled back to within one standard deviation of its 320-day moving average, which has proven to act as support in the past three years; with the $1,750 level acting as a floor during the month of August.

According to history, this situation has seen five similar tests of support at this trendline over that time frame, resulting in an average 21-day gain of 8.8%, with all returns positive.

Another surge may be in the making!

Join us today and see what we are considering for Amazon!

Previous Launches.....

Earlier this month, Amazon announced its new Fire TV Cube and a new lineup of Fire TV devices. Last year, the company announced a fresh Echo Line up along with a Fire TV Recast and an Alexa-powered microwave and wall clock.

Amazon Hardware Event…..

And, the Amazon hardware event may be one of the catalysts to turn the stock around.

This event will take place today at the company’s Seattle headquarters at 1:00 PM EDT. The event focuses on the company’s product launches, and the market expects some big announcements.

Expected line-up of announcements are.....

  • the highly anticipated Echo smart speaker,
  • an updated version of the Standard Echo with a sleeker form factor, more smart home features, and enhanced power,
  • the Alexa-powered earbuds which is to include health and fitness features,
  • turning Alexa into a more personalized device, opening new opportunities in spaces like grocery stores, restaurants, and theaters,
  • the first home robot update. The company is tentatively calling the robot Vesta, and there are rumors that Amazon would design it like a mobile Alexa.

Amazon Echo/Alexa controlled 70% of the smart speaker market in the US. And, Amazon is making a concerted effort to maintain this market dominance. Mark Mahaney, an analyst at RBC Capital, predicts that Alexa’s total sales would be $18 billion–$19 billion by 2021. He expects Alexa to contribute 5% of Amazon’s total revenue.

Amazon and the Great Indian Sale.....

Amazon’s Great Indian Sale is scheduled to run from September 29 to October 4. The company’s e-commerce business will turn toward the Indian market for a massive sales push to help bolster its revenue numbers in the final week before the end of the third quarter.

Amazon plans to promote the use of Amazon Pay for online payments. The company hopes to gain by its volume-driven sales with its Amazon Steal offers in the price range of 49–149 rupees, which is less than $1 to about $2.

Other Catalysts for Amazon.....

Amazon announced a special benefit for Amazon Prime members, allowing them to access exclusive mobile game content for the next three months. Amazon plans to launch new content regularly until December. Gamers can access unique game features through in-app selections.

The e-commerce giant launched Amazon PayCode in the United States on September 18. Available in 19 countries, Amazon PayCode allows customers to shop online and to make cash payments in person via the company’s partnership with Western Union. Currently, more than 15,000 partner locations accept Amazon PayCode.

Analysts’ Attention.....

Amazon lost 0.5% Monday after Morgan Stanley analyst Brian Nowak reiterated an “overweight” rating on the stock, but the hardware event will probably over-rule further stock slides. The original 12-month price estimate was $2,300, which Nowak revised downward by $100. Nowak attributed the reduction to the high costs of one-day deliveries.

In terms of analyst attention, the security has seen overwhelming support, with 47 of the 48 covering firms sporting a "buy" or "strong buy" recommendation. Plus, the stock's average 12-month price target comes in at $2,303.14 -- approximately a  30% upside to current levels, and in uncharted territory.

So……

Despite a lot of bad publicity this month, Amazon appears to have plenty of positive catalysts to make a turnaround and push the stock price higher.

What will “Stock Options Made Easy” advise members to do?

What trade has been considered?

Join us today and find out!


AS ALWAYS THE DECISION IS YOURS!


An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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