Amazon.com (AMZN - Get Report) ($239.88 vs. $233.78 on Nov. 21) gained 2.6% between Tuesday's close and the close on Black Friday. This reduced the stock's projected 12-month gain to 4.67% and hence the downgrade to hold from buy according to ValuEngine. Amazon's fair value is $195.89 so the stock is 22.45% overvalued. The main reason for this overvaluation is Amazon's 12-month forward price-to-earnings ratio from Wall Street analysts at 140.35.
The daily chart for Amazon is positive after the 200-day simple moving average at $220.83 held on Nov. 15 and Nov. 16. This week's value level is $221.87 with my annual pivot remains a magnet at $236.23 with the 50-day SMA at $243.15 and my quarterly risky level at $263.71.
Chart Courtesy of Thomson/Reuters