Around the web (Page 4)

Amazon.com Inc. [stckqut]AMZN[/stckqut] was the subject of two investor calls Thursday that raised concerns that it is getting too big.In one case, hedge-fund manager Douglas Kass said government intervention could be imminent.

“I am shorting Amazon today because I have learned that there are currently early discussions and due diligence being considered in the legislative chambers in Washington DC with regard to possible antitrust opposition to Amazon’s business practices, pricing strategy and expansion announcements already made (as well as being aimed at expansion strategies being considered in the future,” wrote Kass, head of Seabreeze Partners Management.

Kass bolstered his argument in a Thursday comment.

“My understanding is that certain Democrats in the Senate have instituted the very recent and preliminary investigation of Amazon’s possible adverse impact on competition,” he said. “But, in the Trump administration we also have a foe against Jeff Bezos, who not only runs Amazon but happens to own an editorially unfriendly (to President Trump) newspaper, The Washington Post.”

Source: Amazon is getting too big and the government is talking about it

With all other things going on, Amazon.com, Inc. [stckqut]AMZN[/stckqut] has been on a run — rising 17.34 percent in just three months. It looks like traders are happy with the stock. On the other side, analysts now consider Amazon a buy, and a technical analysis of the stock is setting somewhat neutral outlook for now.

Let’s talk about the gap between analyst price targets for the next 12 months and Amazon’s current share price. Normally this spread should be in positive territory, indicating that analysts expect an investment’s value to increase over time.  The median target of analyst views collected by Yahoo Finance was as much as $99.22 below AMZN’s recent stock price. That’s the optimistic view from Wall Street.

The stock has actually made strong gains in the past year, as the company has gathered a 39.29% return in the past twelve months. But even with this move, there is still plenty of room for the company to come back from a longer term perspective, and especially if we look to recent lows for the company as well.

Finally, from a technical perspective, there’s a strong possibility that the stock could enter into a new bull market after finding strong support between $985.16 and $990.47. In terms of pullbacks, $999.87 level is the first resistance point. Technical analysis can help recognize key technical price levels in the stock. Investors can use these support and resistance levels to refine their entries and exits from stocks.

Amazon.com’s price is pointing towards neither exit nor entry barriers, according to the Relative Strength Index (RSI). RSI measures the speed and change of a stock price to warn investors when a stock’s momentum has carried it too far. An RSI reading above 80 indicates that a stock is overbought while anything below 20 is oversold.

The Stochastic %K for Amazon is 94.6. The stochastic oscillator is a momentum indicator comparing the closing price of a security to the range of its prices over a certain period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result. Considering the most traditional settings for the oscillator, 20 is typically considered the oversold threshold and 80 is considered the overbought threshold. However, the levels are adjustable to fit security characteristics and analytical needs. Readings above 80 indicate a security is trading near the top of its high-low range; readings below 20 indicate the security is trading near the bottom of its high-low range.

14-day Williams %R for Amazon moved to around 5.53. The interpretation of Williams %R is very similar to that of the stochastic oscillator, except that the stochastic oscillator has internal smoothing. The oscillator ranges from 0 to -100. No matter how fast a security advances or declines, Williams %R will always fluctuate within this range. Overbought and oversold levels can be used to identify unsustainable price extremes. Simply put, readings in the range of 80% to 100% indicate that the security is oversold while readings in the 0% to 20% range suggest it is overbought.

Source: Inspecting more closely technicals of Amazon.com, Inc. (AMZN)

Commenting on Amazon.com, Inc.’s [stckqut]AMZN[/stckqut] first quarter results, MKM Partners said the pace of investment spending by the online retail behemoth isn’t moderating and investors are supportive.

Analyst Rob Sanderson dwelled on the company’s heavy investment in Prime Video, devices and technology, fulfillment capacity, international markets, AWS and other innovations in areas such as robotics and AI. The analyst said investors continue to be supporting of these multi-billion dollar investment areas, placing a significant amount of trust in the business model and the management.

Outlining the reasons for investor faith in the company’s massive capital spending, the analyst said:

• The major opportunities are large and tangible.
• Amazon is in a strong market position.
• Management’s track record is very good.

“We view this as a highly unusual position for any company and a significant advantage that AMZN has over competitors also eyeing these large opportunities,” the analyst commented.

MKM Partners sees significant earnings power potential, especially as higher margin revenue sources like 3P, FBA, advertising and AWS are growing significantly faster than the overall business.

The Best Long-term Growth Opportunity

MKM Partners said, “Our view on AMZN has not changed, we consider the company the best long-term growth opportunity available to investors today.

“While investors continue to be supportive of heavy investments, we do think the stock is increasingly risky as it continues to reach new highs and the profit cycle continues to push further into the future.”

The firm increased its price target for Amazon shares from $995 to $1,095, seeing potential for 15 percent upside over the next year. The rating was maintained at Buy.

Rather than buying aggressively at these levels, the firm recommends adding to positions on market volatility. I, on the other hand, suggest that you simply buy the stock and hold on to it until it significantly dips or until you need to reduce your holdings due to over-exposure.

Source: Amazon’s Not Slowing Down On Investment Spending, And Investors Like It

Photo by Galería de ► Bee, like bees! <3