AMZN Stock Prediction

Amazon.com (AMZN) was a top stock pick based on predictive algorithm recommended to I Know First subscribers of the  “Tech Stocks” Package.

This Best Tech Stocks forecast includes 20 stocks with bullish and bearish signals and indicates the best tech stocks to buy:

• Top 10 tech stocks for the long position
• Top 10 tech stocks for the short position

Published on July 16^th, I Know First’s bullish article regarding Amazon stock summarized why the company remains a solid investment. The exclusive algorithm employed by I Know First correctly predicted a rise in Amazon share price despite analysts’ estimate of a Q2 EPS of -$0.14. Upon releasing their earnings on Thursday, the 23^rd, they revealed a 235.7% surprise to analysts when they reported Q2 EPS of $0.19. This major difference pushed the stock up by a staggering 11% on Friday.

Amazon’s profit-making strategy hinges on future growth. While constantly working to streamline processes and costs, Amazon continues to spend much of their revenues on expansion. Investing in storage, distribution, services, and infrastructure ensures that Amazon customers keep coming back as shopping at the online retail giant becomes easier and faster. Beginning as an online book seller, Amazon.com quickly diversified to grow into the one-stop-shop we know today. Now selling everything from books to household products to food to clothes, consumers have come to depend on Amazon to quickly find the items they need at low prices. Furthermore, members of Amazon Prime receive the added bonus of expedited delivery, further solidifying the relationship between the consumer and the distributor. Anticipated revenues from the Amazon Prime memberships along with product sales revenues give analysts the confidence to estimate average annual earnings growth of 33.46%, making Amazon.com a strong buy.

After severely underestimating Amazon.com’s EPS for last quarter, investors should pay attention to any changes made to estimates in the coming months. The bullish outlook may again be underestimated as Amazon expects the effects of its recent Prime Day sale to continue through the end of the year. In addition to selling 34.4 million items, the company announced that the sale attracted a record breaking number of new members to try Prime worldwide. These are expected to be repeat customers, enticed by the practical allure of Amazon Prime. The Prime Day sale was more successful than even Black Friday sales, and the successful effects should continue to have a positive impact on Amazon.com’s bottom line.

The sprawling success of the Prime Day sale and the massive earnings surprise back up the bullish forecast that I Know First’s algorithm predicted. I Know First remains bullish on the Amazon.com stock based on the positive indicators produced by the algorithm.

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

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