If the last few months have shown anything to doubt Amazon.com ink. (Nasdaq:events of the week) is detrimental to your portfolio. Still, I understand the temptation, especially at this stage. Currently, Amazon shares are up 23% YTD, after being blasted through the four-digit barrier last year. How long can this momentum last?
Despite the General upward trend of the stock allowed comments, is a concept with which I constantly wrestle. Again, not so long ago we marveled shares hitting the$ 1,000. Then critics pointed to the decline in price if only because of simple market dynamics. If it were any other company, I would agree. But with the events of the week, the normal laws of gravity do not apply.
That said, in the short term on the basis, I noticed that Amazon stock is not strongly struck $1,450 level. This is about where the company gap down to almost the end of March. Usually, you expect the events of the week to mount a bullish response. However, that has not yet taken place.
Perhaps it will be soon. But I also can’t help but notice that amzn stock spent several sessions trying to break the barrier of resistance — each time without success. In addition, where the current price is below the 50-day moving average, often viewed as a barometer indicating near term strength (or weakness).
Personal prejudices for Amazon stock investors should not be surprised to see the technical weakness in the coming weeks. Due to their inability to pass $1,450 conviction, the graph of the Amazon looks like a bearish head and shoulders.
As I mentioned, this is temporary considerations, more useful if you are trying to time the market. For those with a long-term goal, Amazon’s aggressive foray into lucrative sectors such as aws and cloud computing platform, should prove decidedly successful.
Aws-this is the real deal
I don’t need to mention that cloud computing is serious business. According to Forbes Author Louis Columbus, Amazon aws, and with the alphabet Inc (Nasdaq:goodbye,U.S.stock markets) and Microsoft (Nasdaq:Russian market), will “capture 76% of all cloud-based platform of the company in 2018; increasing to 80% by 2020.”
In addition, “the total world market for public cloud will be $178B in 2018, compared with $146B in 2017 and will grow at 22% compound annual growth rate (cagr).” Good thing, then, that Amazon’s aws is the fastest-growing income-contribution among companies.
In 2014, arm was brought to 4.64 in the TOP sales billion. Last year, that haul jumped to a whopping 17.46 billion, or 276% more. And starting in 2014, the growth rate of sales was 56%, significantly higher than second place in the Amazon ranking in the category “Other”.
But it’s not just growth that is important for Amazon shares. Aws often represents a large part of the total income picture. In 2014 cloud services companies accounted for only 5.2% of the total. Last year it was allocated slightly more than 9.8% of worldwide sales of nearly 178 billion dollars.
Undoubtedly it is a huge cash cow for the amzn stock. But what’s really scary that aws now may just be spreading its wings.
When the company introduces new technologies, we first see a sharp increase and then decline. To some extent, we are seeing this trend with the aws platform. The difference, however, is that compared to the previous quarter, sales growth is still relevant. Since the beginning of 2014, the average growth compared to the previous quarter at 11.3 percent, approximately what the rate was for the previous three quarters.
In other words, the events of the week is going to put on a clinic that’s only one reason why you should buy Amazon stock.
Too much positive on shares of amzn to ignore
I haven’t even touched the other bases, such as its aggressive stance. Amazon is a pure destroyer, offering no mercy and expect none. It’s ruthless, but you have to like that in real life Gordon Gekko managing your portfolio.
Which brings me to my final argument which I have stressed in the past. As a long-term investment, You will not find better than stock amzn. The company completely dominates online retail, has severely damaged a brick and mortar retail and constantly on the prowl for victims. And, by the way, these victims do not have to include technology!
Summary: Amazon warehouse as automatically as you can get in the markets. Consider any dips as a buying opportunity.
At the time of this writing, Josh Enomoto to take a position in any of the above securities.