stkguy: "I use AMZN strictly as a trading stock."
That's the only senssible way to deal with this kind of stock.
There's no value to this stock above $2 and no one really knows how to value it above $2.00. That's why AMZN's price changes so much. There's no consensus. It's so silly to guess how much AMZN should be worth. Hahahaha . . . .
If violated, $520's will come back into sight quickly.
Fundamentals have nothing to do with stocks like AMZN.
Here is an example to show that:
Suppose everyone who ever wanted to go long AMZN has gone long exhausting his/her capital, including the manipulators of AMZN, and other investors/traders are fully invested in other stocks, with no buying power (including margin) left for anything.
And one day, out of the blue, it's announced that Amazon's earnings have increased by 1000% and the company's own guidance is that the next quarter will see a 2000% increase in earnings.
Would AMZN go up after the announcement?
He has been losing money on his overall AMZN position for four (4) months, and he is happy.
Optionmaster1 is going insane.
I don't blame him.
Is there a possibility for another QE?
Maybe rumors for another QE will start spreading next.
All non-dividend paying stocks are worth about a couple of dollars.
So almost all stocks in Nasdaq are overvalued.
If you're overvalued, why not excel in being overvalued? AMZN clearly excels.
Why? Hadn't the theme be that if the economy remains weak, the Fed won't raise rates so that the money keeps flowing into the stock market?
The morning dip was fake.