Amazon Still Has Upside Potential

| About:, Inc. (AMZN) Inc. (NDQ: AMZN)

Originally recommended on April 20, 2009 (IWB #2915) at $75.11.

Closed Friday at $90.52. (All figures in U.S. dollars.)

Amazon's shares have moved up nicely since I recommended them in April and we now have a gain of 20.5% in slightly more than four months, based on Friday's closing price.

The company's second-quarter earnings of $142 million (32c a share) matched analysts' estimates. The profit was down from 37c a share last year but sales rose by 14% to $4.65 billion despite the recession. The company said it expects third-quarter sales to be in the range of $4.75 billion to $5.25 billion. This compares to analysts' expectations of $4.92 billion.

I believe there is still a lot of upside potential here but if you want to raise cash, sell some of your position. Your annualized gain is about 61.5%.

Action now: Take half-profits.