Thursday, July 25, 2013

Amazon Earnings Review and Projected Price Action

Actual:-$.02 EPS
Estimated: $.06 EPS

Amazon posted a surprising loss during the most recent quarter which raises questions about the profitability of the company.  That being said, the company's operating margin remained at 1% for the quarter, a figure consistent with the previous 12 months.  Additionally, Amazon has developed a track record of razor thin profit margins together with a high P/E, but remains a tech darling on the street.  It has done a solid job in creating new and innovative products while expanding into new markets and, with Bezos still at the helm, the long-term prospects still seem bright. 

From an Ichimoku technical perspective, the setup is still very bullish with all indicators above the cloud together with a bullish kumo future.  The main levels to watch will be the tenkan sen (303.25) and kijun sen (287.2) together with the psychologically important 300 level.


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