Amazon stock has received a series of upgrades after the company reported a big revenue beat. The company reported $0.52 EPS for the quarter, missing the consensus estimate of $1.09. Horrible miss on earnings but Amazon crushed it on revenue. The company had revenue of $43.74 billion for the quarter versus the estimate of $42.26 billion. That means that revenue for the quarter was up 33.7% YOY. Awesome. Continue reading “Amazon PT Hikes After Revenue Beats Estimates”
The Twiggs Money Flow on Amazon stock has broken above the zero line and has gone positive for the first time since August 7, 2017.
Amazon just rolled out Amazon Fresh in my area of Fresno, California. I signed up for the 14-day trial for Amazon Fresh and immediately canceled it because of the poor delivery times. On Saturday, I ordered 4 peaches, and a bag of shredded mild cheddar cheese. Amazon Fresh said they could not deliver it until Tuesday, LOL. I cancelled and told them I’ll just go to the grocery store myself and pick up these items in like a hour. If Amazon Fresh is going to be successful, they have to get delivery times down to same-day and at most, one day later. If they can’t do that they might as well close down their Amazon Fresh website because only the elderly and disabled are going to be willing to wait 3 or more days for their groceries to be delivered.
I think Amazon is poorly executing on their Amazon Fresh division. Amazon Fresh wasted about an hour of my time when you include the time it took me to order and then to cancel my order as well as my Amazon Fresh trial. I won’t try Amazon Fresh again for a long time. Maybe I’ll never try it again. That’s the cold hard reality of retail: first impressions are everything. Amazon has blown it in their roll out of Amazon Fresh by promising too much and then not delivering. Still, if any company can turn this around it’s Amazon.
Amazon.com reported an earnings miss last month which was a big blow to bulls. The e-commerce giant reported a Q2 EPS that fell to 40 cents from $1.78 a year ago which totally missed the FactSet consensus of $1.41. Not only did Amazon totally miss expectations for their profit in Q2, but they cut in half the expectations of what they’re going to make over the next 12 months.
It is too early to take an entry in Amazon right now. Price movement has been a little bit too volatile to find a good entry and exit point. It is probably a good idea to wait for a consolidation first.
Notice how well large players volume is holding up as the price of Amazon stock has dropped. This is a positive divergence and is bullish. The Twiggs Money Flow is starting to round up but we need more of an upward move before making that assessment.
A powerful catalyst for some stocks will be the big tax cut coming by the end of the year or early next year. The idea is to find stocks to buy of companies that are paying the highest in income taxes as these are the companies that will benefit the most when taxes are lowered.
The way this catalyst works is that going into next year, I forecast that we will get some kind of tax reform and tax cuts. Therefore companies that are currently paying high tax rates will have positive earnings revisions as a result of a big Trump tax cut.
Stocks to Buy
According to 2015 taxes, Amazon has one of the highest tax rates of any company. The company paid a Federal tax rate of 31.5%. Big tax cuts will impact Amazon in a big way. Amazon is my favorite of the top stocks to buy for future tax cuts.
AMZN presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 998.31. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 983.11, a stop order could be placed below this zone.
In 2015, Facebook paid a Federal tax rate of 78.9%. Facebook disclosed in early 2016 that it could owe billions due to an IRS investigation into the way it moved assets to an Irish subsidiary to avoid higher taxes.
The IRS tax penalty could total $3 billion to $5 billion, plus interest, according to a Facebook filing with the Securities and Exchange Commission.
FB also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 155.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 151.81, a stop order could be placed below this zone.
#3. Walt Disney
Disney paid a 2015 Federal tax rate of 33.2% and is one of my least favorite of the stocks to buy because of its current downtrend.
Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 104.34. Right above this resistance zone may be a good entry point.
#4. Altria Group
Altria paid a 2015 Federal tax rate of 29.4% and again is one of my least favorite stocks because of its chart.
Altria Group’s price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.
Michael Pachter of Wedbush thinks Amazon stock price will go up 200% within 10 years and hit $3,000 according to a report by CNBC. Amazon has been making all the right moves and we are about to see how Amazon prime day works out today too.
Pachter said that Amazon stock price at $2,000 – $3,000 will give the company a $1 trillion market cap. Pachter also says the company will do $1 trillion in revenue too.
AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 118.93%, which is quite impressive. Measured over the past 5 years, AMZN shows a very strong growth in Earnings Per Share. The EPS has been growing by 53.13% on average per year.
Amazon Stock Price
AMZN is a decent long setup right now. We see reduced volatility while prices have been consolidating in the most recent period which has triggered a momentum squeeze. The Effective Volume shows large players have not been selling AMZN into the most recent pullback; however, the Twiggs Money Flow has been falling which suggests the stock is under distribution right now.
The True Strength Index is very close to giving a buy signal.
There is a resistance zone just above the current Amazon stock price starting at 998.85. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 982.32, a stop order could be placed below this zone.