Amazon's stock dropped to its lowest level since the COVID-19 panic meltdown. The market is overreacting, as Amazon's slowdown and earnings decline phase is likely transitory. The company should provide solid revenue growth and increase profitability in future years, increasing its share price substantially and making Amazon one of the top stocks to own for the next decade.
Remarkably, Amazon's stock dropped by 50% from its all-time high a year ago, filling the long-term unfilled gap at $95 and entering the critical support range at the $90-100 level. The RSI is now below 30, illustrating oversold market conditions for Amazon's stock. Moreover, the massive sell volume indicates panic selling and even capitulation among market participants. Additionally, technical indicators like the CCI, full stochastic, and others imply that a shift in momentum is near, and the stock should stabilize and rebound soon. More importantly, if you're a long-term investor, there's probably little downside risk here. While the stock could fall marginally lower from here, Amazon's shares shouldn't stay below $100 for long.
From tech side analysis, AMZN is close to 81ish weekling basis level, and it is already extended from 8&21 emas, therefore, possibly buy some AMZN here will have very limited downside risk. However, investing in Amazon is not without risk, of course. However, the most significant risk now seems more panic selling due to overall market volatility and another possible leg lower for the economy. Nevertheless, the downside is likely limited now, and there's substantial upside potential for investors willing to hold Amazon long term. There's also the risk of increased competition, where other companies could take more market share from the e-commerce giant. There's also the risk of growth being slower than expected. Furthermore, Amazon may not become as profitable as estimated, and it may take the company longer to achieve significant ($10 or higher) EPS. Please consider these and other risks carefully before investing in Amazon stock.
The investments and idea published may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from independent financial advisor or other professionals to determine what may be best for your individual needs. We do not and cannot guarantee that your use of our APP and/or any of its features will generate profits. All opinions, news, reviews, research, analysis, prices, or other information contained on or provided via this site are provided on an “as is” basis as general market commentary and/or expressions of opinion only. Information may not be complete, accurate or up to date and may not be suitable for every individual, nor be a suitable basis for an investment decision. No representation, warranty, undertaking, assurance or guarantee (express or implied) is made or given as to the availability, adequacy, accuracy, completeness, reasonableness or appropriateness of any of the information or opinions provided or expressed on or through this site. There is no obligation to notify you of any corrections or modifications.
Remarkably, Amazon's stock dropped by 50% from its all-time high a year ago, filling the long-term unfilled gap at $95 and entering the critical support range at the $90-100 level. The RSI is now below 30, illustrating oversold market conditions for Amazon's stock. Moreover, the massive sell volume indicates panic selling and even capitulation among market participants. Additionally, technical indicators like the CCI, full stochastic, and others imply that a shift in momentum is near, and the stock should stabilize and rebound soon. More importantly, if you're a long-term investor, there's probably little downside risk here. While the stock could fall marginally lower from here, Amazon's shares shouldn't stay below $100 for long.
From tech side analysis, AMZN is close to 81ish weekling basis level, and it is already extended from 8&21 emas, therefore, possibly buy some AMZN here will have very limited downside risk. However, investing in Amazon is not without risk, of course. However, the most significant risk now seems more panic selling due to overall market volatility and another possible leg lower for the economy. Nevertheless, the downside is likely limited now, and there's substantial upside potential for investors willing to hold Amazon long term. There's also the risk of increased competition, where other companies could take more market share from the e-commerce giant. There's also the risk of growth being slower than expected. Furthermore, Amazon may not become as profitable as estimated, and it may take the company longer to achieve significant ($10 or higher) EPS. Please consider these and other risks carefully before investing in Amazon stock.
The investments and idea published may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from independent financial advisor or other professionals to determine what may be best for your individual needs. We do not and cannot guarantee that your use of our APP and/or any of its features will generate profits. All opinions, news, reviews, research, analysis, prices, or other information contained on or provided via this site are provided on an “as is” basis as general market commentary and/or expressions of opinion only. Information may not be complete, accurate or up to date and may not be suitable for every individual, nor be a suitable basis for an investment decision. No representation, warranty, undertaking, assurance or guarantee (express or implied) is made or given as to the availability, adequacy, accuracy, completeness, reasonableness or appropriateness of any of the information or opinions provided or expressed on or through this site. There is no obligation to notify you of any corrections or modifications.