InTheMoneyStocks'  Instablog

Send Message
  • Amazon Stock Appears Lost In The Forest 0 comments
    Aug 13, 2013 1:19 PM | about stocks: AMZN

    For the first time in ages,, Inc. (NASDAQ:AMZN) appears to be destined for a bigger fall. It truly looks like the stock is lost with slow selling by institutions. Recently, Amazon reported earnings. At first, the stock fell lower but then quickly recovered to surge, making new all time highs. The earnings were again horrid, putting the P/E ratio for AMZN well north of 1000. In the past, the stock has always fought back to move sharply higher. This time looks different.

    First, the pop after earnings was pure short covering. Tons of traders shorted the stock into earnings only to have it fall a minor amount on the report. As they covered, the stock price rose. Remember, covering a short is buying. As the stock popped, more shorts covered. By the end of the day, all the shorts that held just for earnings were out. Now the stock could resume its normal course based on the earnings announcement. That normal course was down.

    Since that one day pop on earnings, Amazon has done nothing but go lower. Even in an up market, the stock heads lower. At this point, all bounces can be shorted in my opinion. I think the company is fantastic. I buy tons from However, valuation makes no sense here. The stock will head to $220.00 by the end of 2013.

    Gareth Soloway

    Stocks: AMZN
Back To InTheMoneyStocks' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • And he just closed out another one, $DUST for +7.55% in the Research Center...
    Jul 20, 2016
  • Gareth sold his $JDST in the Research Center here: Profit earned = +12.5%. Congrats members!
    Jul 20, 2016
  • $IWM negative already on the day. Small cap warning signal?
    Jul 20, 2016
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.