AMAZON STOCK FALLS BELOW MA5 AFTER COMPANY WARNS OF INCREASED INVESTMENTS
Amazon’s stock is currently trading at 1641.12-lower by 4.52% as compared to the previous closing price. The stock fell in pre-market trading on Friday after the company warned of increased spending this year, following a relatively slow investment period in 2018.
The company generated EPS of $6.04 for the fourth quarter of 2018. The EPS was above the consensus estimates of $5.68. Revenue of $72.4 billion also exceeded the market expectation of $71.9 billion. The company finished the year with $232.9 billion in annual revenue, passing the $200 billion milestone for the first time.
Amazon, however, gave a weaker-than-expected current-quarter sales forecast. The online retailer said that it expects revenue to come in between $56 billion and $60 billion, slightly below the consensus estimates of $60.8 billion.
On the technical front, the current price is below the MA5 (1657.55) and MA20 (1653.44). The current price is below the middle line of the Bollinger Bands and is heading downwards. The stock is expected to trade lower today.
TRADE SUGGESTION- LIMIT SELL AT 1655 TAKE PROFIT AT 1630 STOP LOSS AT 1668