Amazon stocks are seen to be regaining their positions as one of the leading assets in the tech sector this January. For the moment, the stocks – which make up one fifth of FAANG - seem to have the potential to face a mid-term upside.
Amazon has a largely diversified business model which reaches far beyond its original e-commerce profile. As Amazon holds 40% of the e-commerce sector in revenue, this could look like a good launch pad for a possible stock price take off as people became used to such ways of shopping during lockdowns.. This newly highlighted way of shopping may well play into the hands of e-commerce market participants to expand their business in 2022-2023. Moreover, Amazon’s pioneering cloud computing services which are being marketed for business users is also giving it a push to potentially become a leader in this sector. The company may even gain from the spread of the Omicron variant in terms of sales. The Bank of America forecasts that Amazon’s revenue may be up by 22% in 2021, while perhaps gaining an additional 16% in 2022 and 19% in 2023.
From this perspective Amazon’s shares may be seen to be undervalued as they lost almost 13.5% since the middle of November 2021. Technically, Amazon’s stock prices are within the upward trend as they are below $3200, and the recent decline may rather be treated as a strong correction within this trend, and without changing its direction. A classical “hammer” candlestick reverse pattern on the daily chart may also indicate an upside potential of the stock. The lower shadow of the candle has touched the $3123 mark. The first target of the potential rise may be found at $3500, while the second may be at $3700, or 15% up this year. The overall upside potential of the stock may be considered above $4000 or 25% from current price levels given the recent three year forecast of Amazon revenues.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.