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Amazon Pulls Back Sharply Ahead Of Earnings

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January 28, 2013 – Comments (6) | RELATED TICKERS: AMZN

After new 52 week and all time highs last week, Amazon.com, Inc. (NASDAQ:AMZN) is pulling back sharply. The stock is trading at $275.72, -8.27 (-2.91%). This drop is occurring as investors are taking profits ahead of earnings on Tuesday, January 29th, 2013, after the markets close. Wall Street is expecting earnings of $0.29 per share.

The key to remember is that Amazon, even if they beat estimates is still trading at a 100 plus price-to-earnings ratio. Institutions are unloading, recognizing this. On a technical basis, the chart is extremely extended and there may be a reversal candle on the daily chart as of today. That is a very bearish signal. All eyes will be on Amazon tomorrow when they report.

Gareth Soloway
InTheMoneyStocks

6 Comments – Post Your Own

#1) On January 28, 2013 at 1:12 PM, Mega (99.95) wrote:

If you think this is sharp, wait until the meltdown really starts.

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#2) On January 28, 2013 at 7:29 PM, JohnCLeven (82.23) wrote:

+1 for MegaShort's comment

Look out below...

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#3) On January 29, 2013 at 4:16 PM, Valyooo (99.64) wrote:

Yeah good comment with the stock being up 7% after hours on lowered earnings and projecting a loss

 

You clearly dont understand how amazon trades, keep using your valuation metrics... 

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#4) On January 29, 2013 at 4:19 PM, Borbality (45.98) wrote:

lol

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#5) On January 29, 2013 at 4:31 PM, elcid24 (78.25) wrote:

Gross margins increased from 20.7 to 24.1%.

That's impressive. 

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#6) On January 30, 2013 at 12:48 PM, JohnCLeven (82.23) wrote:

@Valyooo

Care to enlighten us mere mortals on how AMZN trades?

Thanks!

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