In the first 30 minutes of trading today, Amazon.com Inc. (NASDAQ:AMZN) triggered a red monthly Trade Triangle indicating a major trend change in this stock. This could be partly due to Amazon's announcement yesterday that it planned on opening 400 brick and mortar bookstores. So after putting almost every bookseller out of business, Amazon is now going into the brick and mortar business. Could that be a big mistake for Amazon?
Technically speaking, Amazon could quite easily fall back to the $441.95 level which represents a 61.8% Fibonacci retracement. That is $100 lower than the current price. Personally, I love Amazon, I shop there all the time, but right now I do not like the stock of Amazon. I think that Amazon is setting up to go lower based on the Trade Triangle technology. If my analysis of Amazon is correct, it does not auger well for the rest of the market or the economy.
The Coming Demise Of Yahoo
Just 20 years ago, Yahoo! Inc. (NASDAQ:YHOO) was one of the most dynamic stocks on the tech scene, now it's fighting for its life.
Yesterday, Marissa Mayer announced that Yahoo was laying off 15% or 1,700 employees of its workforce in a cost-cutting measure that is supposed to save $400 million a year. News flash - It is a little too late to do that Marissa as none of the expensive acquisitions you made, including Tumblr for $1.2 billion, are showing any profits.
So here is the story as I see it, Marissa Mayer was brought on board as "top dog" on July 16, 2012, to steer Yahoo back to profitability. At the time of Ms. Mayer joining Yahoo, its stock was trading around $16.00. In the beginning, Marissa was helped by a number of expensive acquisitions and a very friendly market environment that generally moved stocks higher, including Yahoo. It also didn't hurt that Yahoo owned a 15% stake in Alibaba, which was one of the most anticipated IPOs in 2014. Alibaba Group Holding Limited (NYSE:BABA) debuted by raising $21.8 billion dollars.
Those days have gone forever, now it is trench warfare as Yahoo fights for survival in an ever increasing competitive tech/internet advertising world. I would not be surprised to see Yahoo trading back down to the $16.00 level by June or July of this year. In other words, it is back to the future for Yahoo and that is why I'm very bearish.
Is GoPro A No Go Proposition?
After the close today, GoPro Inc. (NASDAQ:GPRO) is a set to release its Q4 earnings. This stock has been in a decline since last August and with all of the Trade Triangles red, I continue to be negative. I suspect that no matter what earnings are announced after the close for GoPro, the markets will take it as a negative for the stock. GoPro is trading around $10 share at the moment and I would not be surprised to see this stock head south to $5 a share in the next six months.
If you have any thoughts about these stocks or others, please feel free to leave a comment or question below this post. We always appreciate hearing back from our members.
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Adam Hewison
President, INO.com
Co-Creator, MarketClub
Always good to have your in-depth insights. Thanks