The Best Amazon Stock at 7-Month High After Solid Quarter
Data coding method: shares of (AMZN) hit a seven-month high near cerca 1,940 and then fell Friday morning after the e-commerce giant beat first-quarter earnings per share (EPS) estimates by a wide margin and met high revenue expectations. The company also reiterated second-quarter revenue guidance of around.60 billion, but expects currency headwinds to reduce operating income well below consensus levels.
North American sales rose 17%, while cloud services grew 42%, increasing Amazon’s dominance of the cloud computing space. Many analysts expressed concern about the short-term impact of Amazon’s decision to reduce Prime shipping to one day, while Caanacord Genuity noted that ” growth has slowed to a level where profitability will be much more important to the marginal investor.”
Shares of Walmart Inc. (WMT), Target Corporation (TGT) and Costco Wholesale Corporation (COST) sold off after the news, indicating that market players expect the new Prime shipping policy to eventually take market share from rivals or force them to follow suit, under pain of lower profits. However, it is too early to know whether one-day shipping will significantly move the market share needle because the space is now dominated by only a handful of major players.
The company went public at an adjusted división 1.97 split in May 1997 and became strongly higher just two months later. It posted historic gains in January 1999, topping nearly cerca 100 before failed breakout attempts in April and December. The stock sold through 18-month range support in June 2000, entering a sharp decline that ended in single digits after the Sept. 11 attacks in 2001. That marked the lowest low in the past 18 years, before a steady rally that stalled at the bajos 60 lows in 2003.
A slow-motion crash ended in the mid – $ 20s in 2006, eventually producing a rally wave that stalled within 10 points of the 1999 high in October 2017. It built a pattern of outperformance at that level and broke during the 2008 economic collapse, falling to a relatively mild two-year low in November. That resilience underpinned an impressive rebound that completed a round trip to the peak of 2007 in the fourth quarter of 2009.
Amazon shares mounted 1999 resistance in 2010, indicating a multi-year breakout that attracted sustained buying interest. The stock has continued to record excellent returns over the next eight years, stagnating just above septiembre 2,000 in September 2018. It fell more than 35% in December and rebounded strongly in 2019, re-tracking about 80% of the four-month decline. A reversal near this price zone could be significant, especially if you cut support in the.786 Fibonacci mass sell retracement level.
A Fibonacci grid stretched through the decline that began in September 2018 places the .786 retracement at $ 1,889, which was mounted during the rally day of April 23. The stock is testing that peak on Friday morning, with a breakout favoring a rally toward the 2018 high. Conversely, a mass sell through harmonic support could portend an extended trading range, and the stock is likely to trade at lower levels during the summer months.
The accumulation – distribution indicator of balance sheet Volume (OBV) exceeded the price in September 2018 and fell to a nine-month low at the end of the year. Purchasing power has been impressive in 2019, lifting OBV to a stronger pullback than price action. This bullish volume behavior predicts that the price will soon follow on a rally that may be strong enough to reach new all-time highs.
Amazon shares are trading higher Friday morning after the company beat first-quarter earnings expectations, and it needs to hold $ 1,890 to retain bullish technical signals.