Amazon shares seen heading for some short-term downside
Amazon shares have enjoyed an extraordinary five-week run through to the end of November. However, some analysts are beginning to suggest there could be some down time ahead for the tech giant.
Amazon shares closed lower in the US Monday, down 2.44% at $1,133.95. Pre-trade activity is currently pointing a little higher.
Charts pointing downward
BTIG technical strategist, Katie Stockton, said the charts suggest some downside for the Amazon stock is due.
"We're really viewing the pullback as something that should be short lived, but should persist in the days ahead just based on the proximity of support on the chart, which is a bit lower based on the breakout point," Stockton said on CNBC's "Trading Nation" programme.
Her comments come after Amazon ended the week ending December 1st, in the red, for the first time in five weeks.
However, Stockton and others are in agreement the overall outlook for Amazon shares is positive and any slowdown will likely be short-lived.
Indeed, its multi-pronged growth strategy and ability to walk away from deals that won’t deliver what Amazon wants, are just two reasons why more success is likely for the online retailer.
Amazon Australia finally opens for business
Amazon Australia has now officially opened for business. While it was scheduled to begin taking orders on Black Friday, a couple of technical hitches delayed that date by a little over a week.
So far, Amazon is able to offer one-day delivery in just some areas and has products available in around 20 different departments. However, a larger product selection and improving delivery capabilities, are likely on the agenda over the next year.
While Amazon will no doubt become busier during 2019, analysts and shoppers alike, appear a little underwhelmed with the initial Amazon offerings.
“They are offering pretty good deals and their launch is really aggressive, but it is just not meeting what Australian consumers expect at the moment,” said Kim Do, senior analyst at IBISWorld, according to an article in the Independent.