From an investment perspective, Amazon is unique. The company has managed to defy the odds stumping analysts and consistently posting growth even during times of economic downturn. Amazon shares have never traded below a price-earnings ratio (P/E) of 50 hitting a 3000 level at times, to give some perspective; the average P/E ratio is 18. Amazon stock has grown more than 200% in the last 5 years. The question is: will the uptrend continue?
Investors Notes:
- The average annual target for Amazon, from a group of analysts is a 422.50 with a high of 500 and a low of 330. This represents more than a 25% rise since the last ‘support’ level of 337.49.
- Yet, Amazon is currently trading at 333.55; the 50 day moving average (MA) has moved above the longer term 100 day moving average and the two indicators are starting to diverge highlighting a potential buy signal for the stock.
- The 50 day MA and 100 day MA and more recently, the 200 day MA dropped below price action, further indicating an upward trend.
- Nothing elevates a stock’s price quicker than release of a new product, Amazon have announced the release of the new Fire phone- available in stores on the 25th July. The smartphone is set to rival Apple’s iPhone with more unique features such as the Dynamic Perspective.
- Banc De Binary analysts predict that Amazon will continue its growth into 2014 and beyond, indicating a potential long-term upward movement in AMAZON stock.