Amazon fell below its 5 day moving average of $77.8, and I decided to sell 10 shares at $77.35. I only sold 10 shares because I do not want to get burned if AMZN continues it's trend upward. I think I am going to put a stop loss in at $81, which I see as AMZN's next resistance. If that happens I would rather take the very tiny loss, and come back to short when AMZN pushes up against its 52 week high of $88. If AMZN goes down like I think it will, I'll add more shares short at $73.
Earnings is coming up April 23 and you never know what to expect in this season, except that Amazon is 'priced to perfection' and any inclination of weakness will drive the stock down. A report came out this morning that said Amazon may be responsible for a third of U.S. e-commerce, when you account for other companies selling through Amazon this wouldn't surprise me. However, Amazon has been sacrificing margins to achieve market share.
In terms of long-term e-commerce I think you will see that as people become more comfortable with buying things online, they will be more willing to try sites that don't have as strong of a brand. However, currently Amazon is clearly the place to shop. The real question is whether Amazon will be able to achieve economies of scale to match prices of the other discount sites before people start shopping other sites. There are some other great sites out there that specialize in certain things. I envision that eventually people will have a mental online mall, different shops for different things...Newegg for computers, Zappos for shoes...and I guess Amazon will be the catch-all.
Disclosure: Short AMZN
Earnings is coming up April 23 and you never know what to expect in this season, except that Amazon is 'priced to perfection' and any inclination of weakness will drive the stock down. A report came out this morning that said Amazon may be responsible for a third of U.S. e-commerce, when you account for other companies selling through Amazon this wouldn't surprise me. However, Amazon has been sacrificing margins to achieve market share.
In terms of long-term e-commerce I think you will see that as people become more comfortable with buying things online, they will be more willing to try sites that don't have as strong of a brand. However, currently Amazon is clearly the place to shop. The real question is whether Amazon will be able to achieve economies of scale to match prices of the other discount sites before people start shopping other sites. There are some other great sites out there that specialize in certain things. I envision that eventually people will have a mental online mall, different shops for different things...Newegg for computers, Zappos for shoes...and I guess Amazon will be the catch-all.
Disclosure: Short AMZN
No comments:
Post a Comment