Prime Time Has Expired
Today and tomorrow make up Amazon’s annual Prime Day promotion. Just a coincidence but the stock recently approached it’s all time high for the second time in two months and looks like a triple top. I recently heard or saw a technician somewhere claiming the stock market doesn’t make triple tops that it always breaks thru eventually. Don’t know if he was just talking about the market as a whole in that I never researched it but doubt he was correct. As far as individual stocks are concerned I know plenty of stocks have made triple tops before large declines. Although possible AMZN breaks thru and goes higher from here, I seriously doubt it. It has been the market leader since the 2009 bottom. I believe the fundamentals while still positive, are past peak momentum in earnings growth rates. The advertising business is the new engine but it won’t make up for the competition in cloud revenue from AWS. Still growing, just not at the levels of the past number of years. Every bull market has it’s leaders and they all go down (different rates and amounts) when the bull turns to a bear. AMZN should see 2000 or lower over the next two years, probaly sooner than that.