Amazon Stock Set for Long Term Growth Following Fire Phone Release
Many investors consider Amazon to be unique. The company has repeatedly defied the odds and proved analysts wrong; it consistently posts growth even during times of economic hardship. The company’s shares have never traded below a price-earnings ratio (P/E) of 50 and have even hit 3000. The last five years have seen Amazon stock grow more than 200%, but the question is: will this trend continue?
The average annual target for Amazon (taken from a group of analysts) is a 422.5 with a high of 500 and a low of 330. This is an extremely healthy rise of more than 25% since the last ‘support’ level of 337.49.
However, Amazon is currently trading at 320, furthermore, the 50 day moving average (MA) has moved above the longer term 100 day MA and the two indicators are starting to diverge, which highlights a potential buy signal for the stock.
In a further indication of an upward trend, the 50 day MA, 100 day MA and the 200 day MA all dropped below price action.
Furthermore, Amazon has just released the new Fire phone. It is thought that the smartphone will be a rival to the iPhone thanks to unique features such as Dynamic Perspective. As a result analysts are predicting that Amazon will continue its growth throughout this year and beyond.