Jeff Bezos is still the richest man on the planet. Thanks to Amazon stock’s (AMZN) recent rally, it appears that Bezos will retain the throne in the foreseeable future.
Forbes reports that Jeff Bezos’ fortunes grew by $730 million to $116 billion as of today [Forbes]. Unfortunately, the same couldn’t be said about his ex-wife Mackenzie.
Mackenzie Bezos recently dumped 200,000 Amazon shares for a whopping $370 million [CNN]. Those shares could have been worth more if she held onto them for a few months. The tech-giant appears ready to roar after posting a strong earnings beat and printing a bullish technical setup.
The holiday quarter was a blessing for the e-commerce company. Wall Street expected Amazon to post profits of $2 billion and per-share earnings of $4.30. Instead, the tech titan shocked analysts [CNN] by generating profits of $3.3 billion and an EPS of $6.47. The firm also registered revenue of $87.4 billion for the quarter ending in December 2019.
The earnings release brought more positive news to investors. CEO Jeff Bezos said, “more people joined Prime this quarter than ever before.” The company reported over 150 million Prime subscribers [CNBC] around the globe. This is a sign that investments in the one-day shipping program and original Prime video content are paying dividends.
AMZN is up over 12% in after-hours trading.
It appears that yesterday’s AMZN rally is just the beginning. Peter Brandt, the most followed trader on Twitter, believes that the tech giant’s stock is ready for a massive technical breakout. The veteran analyst wrote yesterday after the closing bell,
Tomorrow, Amazon $AMZN should open at or above $2,050, thus beginning the completion of a massive cup and handle pattern with a target of $2,574.
At Amazon’s current price of $1,870.68, the stock can potentially rise 30%.
Brandt is not alone to have a bullish view on AMZN. Jason Harris of StockHunterTrading.com thinks that Amazon can regain its bullish tone. He told CCN.com,
Amazon has always been about how much they invest into R&D and how much Amazon Web Services can carry the company. So far AWS is the best and as long as they can reduce or get the 1 day shipping under control and keep growing prime members, they can grind higher.
The trader suggests investors should nevertheless remain vigilant. He said that the second the market tanks, Amazon will be the first tech giant to roll over just like in the last quarter of 2018. During that time, AMZN plunged from the all-time high of $2,050.50 to $1,307 for a 36.3% drop.
Fortunately, the S&P 500 has not yet shown signs of a technical reversal, though many sectors are overvalued. This means that it’s all systems go for AMZN. Good news for Jeff but not so much for MacKenzie.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer does not own shares of Amazon (AMZN).