Is Amazon (AMZN Stock) ‘primed’ for gains?

Giles Coghlan LLB, Lth, MA Financial Source

If the US is heading into a recession many analysts and investors consider Amazon stock to own through a recession. Amazon’s business revenue has diversified in recent years and its price competition feature for sellers means that Amazon prices can respond very quickly to a need for lower prices. In the event of a recession, buyers will come online to Amazon and price compare against other e-commerce sellers.

Amazon’s stock is also about to enter a really strong seasonal pattern. Between June 25 and July 23 Amazon stock prices have gained 10 times in the last 10 years and not lost value once. The average gain has been 7.40% and the smallest gain was 2.70% in 2012. Will Amazon shares gain again this time?

Major Trade Risks: If the Federal Reserve is forced to act more forcefully in hiking rates then it is reasonable to expect more selling in stocks.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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