According to the company, it sold billions of items globally, tens of millions of Amazon devices and in just one week added more than 5 million new Prime trials or memberships. Further, Prime one-day or same-day sales nearly quadrupled year over year.
The move comes as e-commerce sales capture a record amount of holiday retail sales.
In other words, the leading e-commerce juggernaut had a very good holiday season, even if it’s not evident in the stock price. That makes it a perfect pick for Real Money’s Stock of the Day.
It’s not that Amazon has done poorly this year per se - up 21.7% - but it badly lacks its peers and the broader market. For instance, the PowerShares QQQ ETF (QQQ) - Get Invesco QQQ Trust Report has risen 38.1% in 2019, while Apple (AAPL) - Get Apple Inc. (AAPL) Report, Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report and Alibaba (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report have gained 82.4%, 55.7% and 57.1%, respectively.
Will that change in 2020?
Trading Amazon Stock
A look at the daily chart above shows the less-than-stellar action of 2019. Again, it hasn’t been a bad year for Amazon stock, it just hasn’t been as good as many investors had hoped.
However, Thursday’s holiday sales news was helping give the stock a boost. Amazon stock continues to trade in a channel (blue lines) and has been doing so for several months.
Further, the 200-day moving average has been acting as resistance, after failing as support in September. The $1,825 level has been acting as resistance as well, while the $1,700 mark has been support.
After bouncing off channel support in mid-December, AMZN stock quickly reclaimed its 50-day and 20-day moving averages and coiled in a sideways pattern for more than a week. Moving out of that consolidation pattern now, Amazon shares face a critical point on the charts.
At the $1,825 level and 200-day moving average now, bears are looking to keep Amazon stock in check while bulls are looking for a breakout. If buyers can push Amazon through this level, channel resistance between $1,840 and $1,850 is next.
It’s a breakout over this mark that could fuel serious upside in 2020. It puts a run up to the $1,950 to $1,975 area on the table, with $2000+ possible above that.
If resistance holds strong, look to see if channel support currently near $1,750 supports the stock. Below puts range support near $1,700 on the table.