Not as long as Wall Street continues to fund this "profitless growth.'' Now there's a term that AMZN has truly invented.
Without the backing of the FED and the Wall Street cartel, AMZN would have to fund it's expansion attempts through actual cash flow. Of which AMZN has precious little.
AMZN funds it's expansion through stock sales and borrowing more and more from suppliers. It has no net cash, since it owes suppliers over 10 billion.
It has already borrowed in the traditional sense once, over 3 billion to waste on fancy headquarters and more worthless initiatives. That money is gone, and AMZN is likely to line up for another tranche in early 2014.
Another 3 billion so quick might get Wall Street's attention, but probably not. As long as the FED continues to pump 85 billion a month into "financial assets" that can't productively use the capital, AMZN will be there like a sponge to sop it up.
BTW, their numbers on Thursday will be terrible, but it may not matter.
This is also a heavy volume breakout day, which have more often than not been temporary exhaustion tops in AMZN stock. Throw in next weeks almost certain lousy numbers, and the cartel will have a tough time squeezing higher. They've already done their squeeze today.
AMZN tracks the QQQ's almost identical over the last year, and even more so over the last 6 months. It has significantly more downside volatility relative to the QQQ's, but will almost always play catch up to the upside if money flow continues to come into the Nasdaq.
That is what today's trade is all about. Big overall market news flow (GOOG, CMG), coupled with high beta performance chasing, and an options expiration to boot.
Throw in a final short squeeze to clear out the shorts before the earnings announcement, and you have all the ingredients for a surprise fall of 10% or more from the pre earnings close to the post earnings close.
It may fall from here, or rally into the earnings next week, to 340 and above.
But if anybody has any powder left, the smart play will be to play for the downside earnings gap at earnings.
My guess is 315 for one last weekly option bonanza on both sides of the ledger, and then money flow takes over again before earnings. AMZN below 300 after earnings.
Perhaps, but AMZN has traded weak on a relative basis to the HFT scams as of late.
Money flow is coming out of AMZN, as money flows into the rest of HFT scams thanks to Bernanku Bux Forever.
GOOG news is another reason to jam AMZN up in thin trade AH, as has been most of AMZN's levitation from the start. AMZN has achieved almost 80% of it's rise on thin market trades, either pre or post market.
Let's see tomorrow if GOOG news holds for AMZN. If GOOG lifts all boats and AMZN comes along for the ride, they may yet hit your 340 target before earnings.
If not, then AMZN is going lower into earnings and after earnings as well.
Some institutions are actually selling today. No bounce with the NDX, and none of the usual violent swings as machines trade among themselves. Looks like the beginning of liquidation. Ahead of earnings (losses). I am surprised, but the price action is telling.
why is today the start of the prolonged drop, instead of just another in the long line of headfaches? why does the govt shutdown/ debt ceiling matter, when the true event is the end of 85 billion a month injections, which is still at least 6 months away?