In order to get a feel for Amazon, I began my analysis at Alexa.com. At Alexa, I can pull up charts on traffic rankings, page views, and overall reach. I pulled up a 5 year chart for Amazon traffic, and while the overall trend is positive, I’m not too excited about the short term one that is forming. There is a sharp and noticeable downturn after a high peak that occurred at the end of 2006. Here’s a link to Alexa.com and Amazon results.
Notice the rise on the chart that begins in 2003, and peaks at the end of 2006. The traffic levels fall off suddenly to levels at or below 2003 marks. Also, the peak tops at the end of each year are becoming successively lower. These chart patterns are very consistent with the recent bull market in equities and the low cost of debt to the US consumer. With gas prices on the rise, the consumer tapped out, and inflationary concerns, it would be a good idea to keep an eye on the retail sector, the consumer, and Amazon.