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Berger: Why Amazon stock can still deliver
Despite Amazon’s shares dropping 10 percent after reporting weaker than expected profit for Q4, Swiss-based trader Serge Berger explains why he’s still positive about this stock.
The online retailer made a net profit of USD 239m during the period, up from USD 97m during the same period a year ago. Its sales also rose 20 percent from a year earlier to USD 25.59bn, but many analysts had expected revenues of closer to USD 26bn during the period.
1. Amazon has a very big following, it’s still one of the “old” tech companies. It may be a dinosaur in a new world but Amazon has managed to stay at the forefront of the whole internet revolution. For these reasons it’s a very important stock to watch not just in terms of pricing but also because of the developments of the company itself.
2. Serge does warn, however, that just like Google and Yahoo!, Amazon has just come off all time highs – after a “monster 2013”. For this reason, in the medium term, the stock is at a "make or break point". He suggests to "leave the stock be for a while" after earnings on the long side.
3. In terms of levels, Serge suggests looking at USD 380 for the first support levels. The second level comes in at USD 360.
4 Invest in other internet stocks. Serge explains that most of the online retailers, especially the “older” internet stocks, trade very well technically.
01:51 minutes
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