Amazon (AMZN - Get Report) CEO Jeff Bezos released his annual letter to shareholders last night. Bezos did a lot of bragging. From here, it looks to this investor that a lot of bragging was in order. This company is crushing it. We already knew that. Oh, but I mean Amazon is crushing it.
The number that pops is 100 million. That's the milestone that membership numbers for Amazon Prime have surpassed. According to Statista, there were about 126.22 million households in the United States. Let that one sink in, gang. Prime provides to the parent a recurring revenue stream that keep the customer base loyal. So, how happy are the customers?
According to the American Customer Satisfaction index, Action Alerts PLUS holding Amazon has taken first place for eight consecutive years. Hmm. By the way, according to the Harris Poll, the employees feel the same way as the customers. Whoa.
Want to go to Amazon Web Services? The rapidly expanding service with the $20 billion revenue run rate? Yeah, that one. What's growing faster than cloud services? I can't think of anything either, and these guys are top dog. The firm reports quarterly numbers after the closing bell one week from today.
Yes, my friends, the Death Star is indeed just that, but for much more than simply retail.
As the late Steve Irwin used to say, "Isn't she gorgeous?" Yes, I took half of my long position off in March. The president was beating up on Amazon, and I had to protect very large percentage gains in the name. Hey, thank goodness that I hung on to half. This chart is a beauty.
First, notice how precisely the presidential selloff obeyed the simple, straight 38.2% Fibonacci retracement level. Incredible. Not just that, Money Flow is giving us the green signal, literally.
The daily MACD (moving average convergence divergence) just gave us a bullish cross-over. I think the minus signs in front to the 12- and 26-day exponential moving averages (EMAs) are easily explainable. Relative Strength is rising like a phoenix as well.
What I Think
The truth is that anything can happen overnight next Thursday once earnings are released. If one is worried about protecting large gains in the name, one can never be second guessed for taking a profit.
Options become dangerous for some retail investors, because let's face it, the average kid cannot get his or herself on the hook either way for 100 shares of a $1,500 stock. Really, the powers that be should either consider splitting a stock such as this, or consider re-instituting the 10-share options contract for stocks with four figure share prices.
Target Price: 1,800 (By Summer)
Panic Point: 1,350 retest
Note to Readers: I never thought that in my entire life that I would place $450 between target and panic for any stock. Is this nuts? No, gang, it's 2018.