Amazon Looks Ready to Make a Run

by: Jordan Kahn December 27, 2007 | about stocks: AMZN    
Jordan Kahn

Jordan Kahn

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Remember that Dixie Chick's song "Ready to Run"? That is the tune that kept ringing in my head as I looked at the chart of Amazon.com (AMZN).

This company reported stellar earnings last quarter, but the stock ran up so much ahead of the report that it had nowhere to go but lower. Since then, and despite a difficult market, the stock has made a full recovery.

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On Wednesday, AMZN was the only retailer that said that holiday sales were going well. In fact, it said that it was the best holiday season ever for the company. Internet retailers are finally garnering a significant share of holiday shares, and AMZN is capitalizing on that trend. I know that I shop on Amazon.com all the time, both for books as well as electronics. I love the site.

The stock looks poised for more upside action. I think the stock will be back at new highs by the time it reports earnings in January, and I expect that it will report strong earnings again.

This is what made AMZN my Stock of the Day, and I will be looking for any pullback to buy.

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This article has 2 comments:

  •  
    Dec 27 11:37 AM
    So, you fell for their annual "news" release... It really wasn't news worthy at all. And for someone who is educated to base their bullish opinion on surprises to me.

    jeffmatthewsisnotmakin...

    Your conclusion is faulty. Amazon didn't say that holiday sales were going well -- they said they were better than last year. I ask you -- do you think 10% YoY growth would be good for Amazon?
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  •  
    Dec 27 11:43 PM
    But, Jordan.. hasn't Amazon said they have had their best year - every year since 2003? I like the site, I shop there also, however at 100 times earnings at this time? You go ahead, cowboy. Methinks that Amazon is feeding on its own tail, beat competition by cutting margins - but don't revenues have to keep going up always with this model?
    Reply | Link to Comment
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