Amazon, Apple, Facebook price analysis roundup

Written by: Stanko Iliev
December 26, 2020
  • Amazon, Apple, and Facebook continue to trade in a bull market
  • Analysts say that technology stocks have the potential to move up another 25% in the next year
  • The current risk/reward ratio is not good for long-term investors

The U.S. stock market remains in the buy zone, but the current risk/reward ratio is not good for long-term investors as the U.S. still needs to face the COVID-19 challenges. Some analysts say that a strong bullish sentiment is boosted by vaccine hopes as more countries give the green light for vaccination, but the pandemic will not stop in the upcoming months.

While stocks tend to perform well in the closing days of December, it is essential to say that many big companies will have a further drop in revenues and could face liquidity problems.

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Investors’ attention is also focused on a coronavirus relief package, and they hope that the package will pass by Congress on Monday. Donald Trump tried to change a $2.3 trillion coronavirus relief package this week, and he insisted on $2,000 direct payments to Americans.

The U.S. House of Representatives blocked his attempt to change the coronavirus package, and all of this cast some doubts. “If (stimulus) doesn’t get passed in some form or another, it could mean severe consequences for the unemployed,” said Peter Cardillo, chief market economist at Spartan Capital Securities.

Despite this, some analysts say that technology stocks can move up another 25% in the next year, and Amazon, Apple, and Facebook will be major players. “While vaccine distribution and the potential for a return to normalcy in 2021 remain in the fore of investor strategy, owning work-for-home stocks continues to be the “right path” for at least the next six to 12 months”, said analyst Daniel Ives.

Amazon shares remain in a buy zone

Data source: tradingview.com

When we look at the chart above ( one year period), we can see that this stock price has advanced from $1626 above $3500, and the current price stands around$3172. The critical support levels are $3000 and $2800; $3300 and $3400 represent the resistance levels.

If the price jumps above $3300, it would be a signal to buy Amazon shares, and we have the open way to $3400. On the other side, if the price falls below the $3000 support level, it would be a firm “sell” signal and maybe a trend reversal sign.

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Apple shares are trading again above the $130 level

Apple is a stable company with a good position in the market, but at the current stock price, this company is overvalued, in my opinion.

Data source: tradingview.com

Technically looking, Apple shares remain in the bull market, and the first sign of the trend reversal will be if the price falls below $100 support. If the price jumps above $140, it would be a signal to trade Apple shares, and we have the open way to $145.

Facebook shares have found strong support above $240

Technically looking, as long the price of this stock is above $240 support, it remains in the bull market, but there are some apparent risks when it comes to buying Facebook shares this December.

Data source: tradingview.com

The current support levels are $240 and $220; $280 and $300 represent the resistance levels. If the price jumps above $280 resistance, the next target could be around $300, but if the price falls below $240, it would be a firm “sell” signal and maybe a sign of the trend reversal.

Summary

The U.S. stock market remains in the buy zone, but the current risk/reward ratio is not good for long-term investors as the U.S. still needs to face the COVID-19 challenges. Despite this, some analysts say that technology stocks can move up another 25% in the next year, and Amazon, Apple, and Facebook will be major players.