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16 hours ago
Amazon Forecast – Major Stocks Look to Move Higher in Premarket
By: Christopher Lewis | January 14, 2025
• AMZN Technical Analysis
Amazon is slightly higher in pre-market trading, but it’s probably worth noting that Amazon is still basically at the bottom of a consolidation range. It really hasn’t taken the brunt of the selling pressure like some other stocks may have. You could make an argument for $215 being an area that you have to watch, due to the previous swing high, the 50-day EMA, and the fact that it has, at least so far, offered a little bit of support, maybe based on market memory, who knows?
But at this point in time, it does look like it’s going to jump a little bit at the open, not much, but then again, it didn’t sell off like some of the other big names that we follow here. The uptrend is still very much intact when it comes to Amazon.
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DiscoverGold
5 days ago
Amazon.com (AMZN) Expands Digital Advertising Offerings
By: Schaeffer's Investment Research | January 9, 2025
• AMZN finished nine of the past 10 years higher
• The stock is starting 2025 near all-time highs
Amazon.com Inc (NASDAQ:AMZN) continues to revolutionize the digital advertising space with its new Amazon Retail Ad Service, allowing U.S. retailers to integrate its ad technology directly onto their websites. More specifically, the service enables brands to place "contextually relevant ads" on search results and product pages.
Shares of the tech behemoth have shown resilience despite broader market volatility. AMZN finished 2024 with a 44.4% gain, marking its ninth positive year in the last decade. The equity is off to a decent start in 2025, hovering just below its Dec. 16, all-time high of $233 with support at the $220 level.
Despite this strong performance, short-term options traders still favor puts. This is per Amazon.com stock's Schaeffer's put/call open interest ratio (SOIR) of 0.85, which sits higher than 74% of readings from the past year. An unwinding of this pessimism could provide additional tailwinds for AMZN.
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DiscoverGold
5 days ago
Bull of the Day: Amazon (AMZN)
By: Zacks Investment Research | January 10, 2025
Amazon (AMZN) has ripped 20% higher in the past three months to finally break out meaningfully above its 2021 highs, outpacing most of its Magnificent 7 technology peers during this stretch.
AMZN stock looks ready to run as Wall Street rewards Amazon for its transition into a mature company churning out massive earnings growth. The cloud computing and e-commerce titan is spending heavily to ensure it grabs its share of the gigantic and rapidly expanding artificial intelligence pie. Amazon is even trying to compete against Nvidia in the AI chip market.
Amazon stock trades at all-time highs while its valuation levels are near their lowest on record, driven by soaring earnings.
Investors should consider buying this Magnificent 7 tech stock in January because Amazon looks dirt cheap and ready to take off again following an underwhelming several years based on its lofty standards.
Why Amazon is a Must-Buy Stock in 2025
Amazon holds nearly 40% of the total e-commerce market share in the U.S., blowing away second-place Walmart’s 7%. Amazon also runs the world’s largest cloud-computing business. AWS controls 31% of the global cloud infrastructure market at 31%, outpacing Microsoft’s (MSFT) 20% and Alphabet’s 12%.
Amazon’s Prime business is expanding its reach in the streaming world to better compete against Netflix and others. On top of that, Amazon’s digital advertising segment is surging. The strength of its higher-margin AWS and ad segments and its commitment to efficiency are driving Amazon’s earnings growth.
Image Source: Zacks Investment Research
Amazon grew its revenue by roughly $200 billion ($188b) between FY20 and FY23 to pull in a mind-blowing $574.79 billion in 2023.
On top of that, AMZN swung from a loss of -$0.27 a share in 2022 to +$2.90 a share in 2023, restarting its impressive bottom-line expansion of the last several years after its FY22 downturn.
Amazon’s FY24 earnings outlook has climbed 50% in the last 12 months, with its FY25 outlook over 30% higher. Amazon’s EPS per share estimates have surged recently and its Most Accurate Zacks estimates came in solidly above consensus, helping AMZN land a Zacks Rank #1 (Strong Buy).
The tech powerhouse has crushed our bottom line estimates by an average of 25% in the trailing four quarters.
Image Source: Zacks Investment Research
Amazon is projected to grow its earnings by 82% in 2024 and 20% in FY25 to reach $6.32 a share. The company is also expected to boost its sales by 11% in FY24 and 2025 to climb to $706.50 billion in 2025—adding $130 billion vs. FY23.
AMZN is set to post four straight years of low double-digit sales growth following years of much larger expansion as it settles into its standing as a mature tech powerhouse akin to Microsoft. It is also worth stressing that the larger YoY percentage growth figures are impossible to maintain as the base number rises.
Why Amazon is a Great Artificial Intelligence Stock to Buy
Amazon plans to spend more than $100 billion over the next decade on data centers and other efforts to fuel its AI expansion. Amazon in November said it was investing another $4 billion in AI safety and research upstart Anthropic, doubling its investment.
The additional billions Amazon is pouring into the AI company are projected to help Anthropic improve and speed up the development of its Claude AI assistant. Amazon is ramping up its plans to compete against ChatGPT and other customer-facing AI standouts.
Amazon announced in December plans for what it calls an Ultracluster. The gigantic AI supercomputer will be comprised of hundreds of thousands of Amazon’s own Trainium chips. Amazon’s Trainium chips are purpose built by “AWS for AI training and inference to deliver high performance while reducing costs.”
Image Source: Zacks Investment Research
Tech companies from Apple (AAPL) to Databricks are using AMZN’s newest chips. Amazon is attempting to improve and grow the influence of its in-house-designed chips to compete against Nvidia’s (NVDA) AI GPUs.
According to AMZN, its “Trainium2-based Amazon EC2 Trn2 instances are purpose-built for generative AI and are the most powerful EC2 instances for training and deploying models with hundreds of billions to trillion+ parameters.” Amazon’s new generation of AI chips deliver up to “4x the performance” and have “50% lower training costs than comparable Amazon EC2 instances.”
Now is a Great Time for Traders and Long-Term Investors to Buy Amazon
Amazon stock has climbed around 10,000% in the last 20 years to destroy Tech’s 800%. AMZN has soared 1,400% in the past decade to blow away Apple, Meta, Microsoft, Alphabet, and Tech (344%). Yet, Amazon’s 135% climb in the last five years has AMZN neck-and-neck with Tech.
Image Source: Zacks Investment Research
Amazon is finally starting to break out, surging 20% in the trailing three months vs. Tech’s 6% climb. The recent run pushed Amazon to new all-time highs, breaking out meaningfully above its 2021 peaks for the first time after it briefly climbed above those levels back in July.
Amazon is trading just below its 21-day moving average and near neutral RSI levels.
On the valuation front, Amazon trades over 90% below its highs and at over a 50% discount to its 10-year median at 35.5X forward 12-month earnings. Amazon trades at some of its cheapest forward earnings levels since the 2008 financial crisis. AMZN’s price/earnings-to-growth (PEG) ratio offers 30% value compared to Tech.
Image Source: Zacks Investment Research
Amazon’s ability to help fund a ChatGPT competitor, integrate AI into all areas of its business, and compete directly against Nvidia in the AI chip industry make AMZN one of the top long-term artificial intelligence investments.
Wall Street agrees, with 46 of the 50 brokerage recommendations Zacks has for Amazon sitting at “Strong Buys.”
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DiscoverGold
5 days ago
$AMZN's mode continues to expand, yet it appears we may be approaching a peak...
By: Peter DiCarlo | January 9, 2025
• $AMZN's mode continues to expand, yet it appears we may be approaching a peak.
An initial indication is a lower high on the BX. The shift from light green to dark green suggests that while the trend remains bullish, short-term momentum is diminishing.
The optimal window to initiate a long position was between $180-$190. Starting a position now might be considered "chasing," although it doesn't preclude further upward movement.
I would categorize this as a "hold" scenario.
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DiscoverGold
1 week ago
Amazon AMZN heads into 2025 showing strength, with its daily chart mirroring the bullish setup that led to a 17% rally in November...
By: TrendSpider | January 5, 2025
• Amazon heads into 2025 showing strength, with its daily chart mirroring the bullish setup that led to a 17% rally in November. Price continues to surf along the 8/21 EMA cloud, now wedging into support. With the Relative Performance Indicator showing AMZN outperforming 94% of the S&P 500 this quarter, momentum suggests the stock could be gearing up for another leg higher.
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fung_derf
2 weeks ago
On the other hand, THIS GUY was a genius!
Trade Ideas
Re: Arcadia post# 12
Monday, September 27, 2004 4:40:25 PM
Post#
13
of 11677
Yes it does. I've made some posts in the past as you know.
My system shows the following technicals:
Technicals
Volume Weighted Volatility: $0.2939 / 15 minutes (?)
Average Daily Volume: 9,689,109 Shares / Day
200 Day Moving Average: $45.6383 (?)
50 Day Moving Average: $39.7806
20 Day Moving Average: $40.3400
Closed down for the previous 1 consecutive day.
Range contraction for 2 days.
I see the recent consolidation pattern as a rest before moving higher:
http://www.trade-ideas.com/StockInfo/AMZN/Amazon.comInc.html
fung_derf
2 weeks ago
Another Nostradamus type post. Predicting is hard!.....and dangerous
Gator8387
Member Level
Re: Joemoney post# 3
Friday, April 13, 2001 6:11:34 AM
Post#
4
of 11676
I think the chances of a chapter 11 filing during 2002 are high, maybe 2/3 chance.
If it makes it through 2002, I think it will be viable, but will be primarily a bmv business, with an appropriate p/s, so maybe the stock will be worth a couple of billion dollars.
Right now market cap is around 5b, I think that is way too high given that bmv is hardly growing at all.
DiscoverGold
2 months ago
Amazon doubles down on AI startup Anthropic with $4 billion investment
By: Investing | November 22, 2024
(Reuters) -Amazon.com pumped in an additional $4 billion into artificial intelligence startup Anthropic, as the e-commerce giant goes up against Big Tech rivals in a race to capitalize on generative AI technology.
This doubles Amazon (NASDAQ:AMZN)'s investment in the firm known for its GenAI chatbot Claude, but it remains a minority investor, the startup said on Friday. Amazon will also be Anthropic's main training partner for AI models.
Amazon, which is Anthropic's primary cloud partner, is fiercely competing with Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL)'s Google to offer AI-powered tools for its cloud customers.
"The investment in Anthropic is essential for Amazon to stay in a leadership position in AI," said D.A. Davidson analyst Gil Luria.
The e-commerce company's increased investment in Anthropic underscores the billions of dollars funneled into AI startups over the past year, as investors look to cash in on a boom in the technology, which became popular with the launch of OpenAI's ChatGPT in late 2022.
Microsoft-backed OpenAI raised $6.6 billion from investors last month, which could value the company at $157 billion and cement its position as one of the most valuable private companies in the world.
Anthropic plans to train and deploy its foundational models on Amazon's Trainium and Inferentia chips. The intensive process of training AI models requires powerful processors, making securing pricey AI chips a top priority for startups.
"It (partnership) also allows Amazon to promote its AI services such as leveraging its AI chips for training and inferencing, which Anthropic is using," Luria said.
Nvidia (NASDAQ:NVDA) currently dominates the market for AI processors and counts Amazon among its long list of so-called hyperscaler customers.
Still, Amazon has been working to develop its own chips through its Annapurna Labs division, which Anthropic said it was "working closely with" to aid in developing processors.
Anthropic, co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, said last year it had secured a $500 million investment from Alphabet, which promised to invest another $1.5 billion over time.
The startup also uses Alphabet's Google Cloud services as part of its operations.
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