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.
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.