Amazon.com
AMZN
Delayed Nasdaq - 12/11 10:00:00 pm
1168.92USD
+0.6%

The risk of a reversal

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David Meurisse
Contributor / Partner

Strategy published on : 12/04/2017 | 16:21

short sell
Live

Entry price : 1154.75$
Target : 945$
Stop-loss : 1202$
Potential : 18.16%

From a technical point of view, shares in Amazon.com are showing signs of weaknesses. There are currently indications of a trend reversal with potentially new declines ahead.
Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● The company is in a robust financial situation considering its net cash and margin position.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 982.91 USD


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● Technically, the stock approaches a strong medium-term resistance at USD 1195.83.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● With an expected P/E ratio at 273.24 and 142.87 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● For the past year, analysts have significantly revised downwards their profit estimates.

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