Amazon (AMZN) earnings and the markets
I’m not too surprised to see another internet technology stock do well. Amazon.com is talked about in this book I’m reading by Chris Anderson called The Long Tail (Economic studies). It’s basically about how the internet has created many unique small niches taking over major generic genres that have consumed the markets basically because consumers on had a few choices being mainstream. Now with companies such as AMZN and AAPL and many other companies that offer huge selections consumers can choose what they really want to read, listen, or watch. It is also a reason why cable just isn’t what it use to be. AMZN earnings will likely keep going up in a down market because it doesn’t have typical Wal-mart (WMT)or BestBuy consumers buying mainstream products.
It’s buyers are searching for specific unique products in which AMZN offers millions of products in which it really doesn’t just offer only a few mainstream productss, but many small categories that add up very quickly to create bigger sales at the end.
I think this boost from $50 to $59 (18%) will slow come down, but AMZN’s stock within the year will likely go back to $60, 70, 80 dollars if it keeps proving it can make solid sales during a depressed time.
As for the markets in general they continue to go sideways in volatile ups and downs. AMZN daily chart looks like it is has now two major points creating an uptrend. One more point and will have a full line moving it up so I’m going to keep watching it closely. Other stocks moving sideways constantly are FSLR, SWN, AAPL, GOOG, QQQQ’s.
No real breakouts have happened. There is just too much negative news on unemployment, oil, and bailout bills to let the market change. I don’t think Obama’s new stimulus package is really going to help if not just worsen our economy even more in another 4 years due to adding on more trillions in debt. What this country needs to do is start being disciplined and obey rules instead of paying to break them (meaning getting rid of washing DC lobbyist and putting bad businesses out of businesses instead of giving them money to stay in business).
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This entry was posted on January 30, 2009 by Paul Awol. It was filed under earnings report, earnings trade, emerging stock trends, trading stock options and was tagged with amazon.com earnings, AMZN, chris anderson, economics theories, good stocks in a down market, the long tail, trading options, wall street journal.