Why Amazon.com, Inc. (AMZN) Stock Has More Than 25% Upside
AMZN stock should reach $1,200 in the next 12 to 18 months, yielding more than 25% returns. On Tuesday, Amazon.com, Inc. (NASDAQ:AMZN) unveiled Echo Show, an addition to its market-leading Echo speaker line. The Seattle-based tech giant says the product, which has has the ability to perform video calls from its built-in screen, will cost $230 and will begin shipping on June 28.
With that in mind, to what extent can Echo Show propel AMZN stock higher? With its display capabilities, the Echo Show — powered by Alexa’s artificial-intelligence — allows users to perform a wide range of visual tasks.
How Amazon came to dominate books, electronics and the cloud — gradually, and then all at once
For Amazon, books were the beginning of a strategy to win the e-commerce game one retail category at a time. The surest sign Amazon is on the verge of dominating its next retail category emerges when online sales start to account for more than 20% of that business, according to an analysis by L2.
Here is how Amazon managed to pass that mark in three key areas over the course of its history.
Books — Way back before companies were feverishly devising ways to thwart Amazon, they were ignoring the e-commerce site all together.
The book publishing and book selling world had no idea what was coming when Amazon AMZN, +0.07% first set its sights on that sector, and did little to prepare for the onslaught.
In August 2005, Barnes & Noble Inc. BKS, -2.45% was enjoying bumps in traffic and sales from “Harry Potter and the Half-Blood Prince.” So was Amazon. It was the online company’s biggest new product release, the company said at the time.
Amazon Is So Dominant in This One Market Apple May Have No Shot at Being a Leader
Amazon (AMZN) may make it pretty difficult for Apple (AAPL) to carve out a huge share of the voice-enabled speaker market.
The Amazon Echo holds a dominant 70.6% market share of the voice-enabled speaker market, according to new data from eMarketer. Alphabet’s (GOOGL) Google Home clocks in with a solid 23.8% share of the market, while smaller players such as Lenovo, LG, Harmon Kardon, and Mattel (MAT) hold down the remaining spots.
eMarketer estimates that 35.6 million Americans will use a voice-enabled speaker at least once a month, up about 128.9% compared to a year ago. There’s a good chance some of those people will be using Amazon’s recently unveiled Echo Show.
Today’s Trading Lesson…
Creating a six-figure income requires many trading skills, but one skills sits above all others.
When you understand trade expectation, everything changes. Knowing how to manage your trades before you place them, makes trading easier. No longer do you struggle with exits or profit-taking.
The most common question I get centers around order flow and momentum. How do you differentiate between the two? The chart below gives you the prefect trading lesson to print out and hang on your wall. The powerful move higher is NOT order flow. It looks impressive, but the price action has no bullish history,
Spotting order flow means continued commitments by the institutions. Order flow means money on the line, and then backed up by more supply or demand. It means the order is not done yet.
Additional buying or selling transforms momentum into order flow. Momentum means cash flow. Learn to spot the difference and everything changes.
On the Tape Today | 5-15-17
ADSK Autodesk showing persistent buying and gave us an inside day on Friday. Game planning a new swing trade long with a $96 buy-stop. Initial target comes in @ $100. If the stock market shows bullish momentum I plan to hold for a $103 sale. Stop loss on a close below $95.
HOG Harley Davidson showing a failed test of $62 and bearish momentum. Looking to initiate a new sell short with a $54.75 sell-stop. Target to cover @ $49.50. Be patient and wait for the trigger price using a stop to enter the trade. Short selling at support can be tricky, force the stock to hit your price.
Tape Reading the SPY ETF
$SPY inside day and consecutive doji candlesticks sets up a trend day. Be ready to hold your trades longer today.
After 14 days, the stock market positioned itself to gives us a few days of momentum. Order flow has vanished, don’t be fooled by the trend that began in November. The catalyst for that order flow, which ended March 1, 2017, has left the building.
Make no mistake, we are making decisions on a day-by-day basis for the general market indices. The NASDAQ continues to show strength, but the remainder of market sectors have traded into a cloudy mess.
Today’s game plan calls for patience, both for the bias, and then for trade management. The perfect set up today comes on a break of the first 30 minutes of price action. Once price confirms today’s order flow, stick with the trade until you see signs of exhaustion.
Everything points to a trend day for the next two days. If we see a close in the top or bottom 10% of the days range, look for follow through tomorrow.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 5-15-17 | Monday Edition
Bullish Momentum: MOMO, SRPT
Bearish Momentum: jwn, rost
Long-Term Order Flow
Bullish Order Flow: CC, WYNN, CTRP, AVGO, AAOI, CRM, AMZN, NFLX, AAPL, MCD, TSLA, MA, EA, HD, ADBE, UNP, MPC, DXC, FB, BABA, XLNX, ADSK, WDC, AMT, HLT, RH, COST, CAT, DE, MAR, UTX, CERN, FSLR, COH, AET, UAL, EXAS
Bearish Order Flow: yelp, x, esrx, car, lyb, slb, cof, akam, slca, oke, oxy, tsco, dvn, ibm, dfs, eqt, apc, clr
2X Normal Volume: SNAP, JWN, KSS, DKS, SBGI
Inside Days: nvda, baba, symc, nbl, abt, nke, myl, dis, yelp, cat, uaa, aal, low, vlo, ba, rrc, coh, ea, phm, car, hd, utx, gs, kmx, fast, cag, hon, adsk, yum, fb
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