Amazon.com, Inc. (NASDAQ: AMZN)
Amazon.com, Inc. (AMZN), a global online retail company on Thursday announced their fourth quarter 2015 financial results. AMZN reported profits of $1.00 per share which fell short of analyst expectations of $1.56 a share. AMZN reported net sales of $35.7 billion which was a 22% increase over same quarter of previous year and fell in line with analyst expectations.
Amazon.com, Inc. CEO’s Comments
“Twenty years ago, I was driving the packages to the post office myself and hoping we might one day afford a forklift. This year, we pass $100 billion in annual sales and serve 300 million customers,” said Jeff Bezos, founder and CEO of Amazon.com. “And still, measured by the dynamism we see everywhere in the marketplace and by the ever-expanding opportunities we see to invent on behalf of customers, it feels every bit like Day 1.” Business Wire
AMZN Technical Analysis
AMZN gapped down in price on Friday to $572.86, down from the prior day’s close of $635.35, which is a 10% decrease in price. Taking a look at the daily chart we can see that the last time AMZN traded below this price level was on January 20th when it traded at $571.77. Taking a closer look at the daily chart we can see that AMZN has been in a mini slump dating back to December 29th when it traded at its 52 week high price of $696.44. Trading on Thursday was very volatile as the trading range was $597.55 to 635.35 as many investors were expecting positive earnings numbers. AMZN does have a float of 384.26 million shares and is trading over 1.5 times the normal daily trading volume. AMZN hit pre market lows of $555.50, but bounced back $17.36, or equivalent to 3%. For trading purposes, my entry short would have been $572.75 looking for a run through $570. My stop loss would have been $573.25, fearing anything above that and the stock would start to fill in the gap down.
Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company serves consumers through retail websites, such as amazon.com, amazon.ca, and amazon.com.mx, which primarily include merchandise and content purchased for resale from vendors and those offered by third-party sellers. It also offers programs that enable sellers to sell their products on company’s websites, and their own branded websites; and programs, which allow authors, musicians, filmmakers, app developers, and others to publish and sell content. In addition, the company serves developers and enterprises through AWS that provides compute, storage, database, analytics, applications, and deployment services in start-ups, enterprises, government agencies, and academic institutions. Further, it manufactures and sells electronic devices, including Kindle e-readers, fire tablets, fire TVs, echo, and fire phones; and provides Kindle Direct Publishing, an online platform that allows independent authors and publishers to make their books available in the Kindle Store. Additionally, the company offers Amazon Prime, an annual membership program, which provides free shipping of various items; access to instant streaming of movies and TV episodes; and access to books to borrow and read on a Kindle device, as well as provides publishing, digital content subscriptions, and advertising services; and co-branded credit card agreements. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington. Yahoo Finance