New Trade for May 17th, 2023

Since the start of April, the major indexes have continued to trade in a narrow range as quarterly earnings season has progressed. The S&P 500’s highest closing level during that period was 4,169 points on April 28—less than 3% above its low point of 4,056 two days earlier.  On Tuesday, it closed at 4,110.  Analysts expect the market to remain in a tight trading range until an outcome for debt ceiling negotiations is observed.  However, one area of the market where several stocks are bucking the trend is mega-cap tech.

Our focus for today is a mega-cap tech company that is thriving in all aspects, leveraging its built-in advantages to maintain stability during periods of economic weakness and looking to maximize gains from long-term market growth.  Don’t miss out on the opportunity to explore how this mega-cap tech company is defying the market trend, and positioning itself for success—click here for today’s trade alert. (AMZN)

The e-commerce market may continue to suffer in the coming months amid recession fears. Nevertheless, the $9 trillion industry is still expected to expand at a CAGR of 14.7% for at least the next four years. Amazon is by far the world’s largest e-commerce company. With five times the market share of its closest rival, Walmart, its 38% leading market share, means it will likely gain the most significant advantage from the market’s growth.

Amazon’s business model has built-in advantages like its subscription service, Amazon Prime, and its streaming platform. The service currently has more than 200 million subscribers globally and 163.5 million in the U.S. That figure is expected to continue to expand at a steady pace. According to a report by Statista, U.S. Prime members are expected to reach more than 176.5 million by 2025.  A potential long-term growth driver is Amazon’s new initiative called project Kuiper.  The company plans to launch a fleet of Low Earth Orbit satellites designed to provide affordable broadband connections around the world starting in 2024.

Wall Street is optimistic about AMZN, with 75% of analysts rating the stock a buy and the average one expecting the stock to rise by more than 20%. That would mean a continuation of the stock’s rally, as it has jumped 35% year to date. stock is still down by 38% from its all-time high of $186, reached in mid-2021. 

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”AMZN” start_expanded=”true” display_currency_symbol=”true” api=”yf”]