Amazon price forecast for Q3 as it lines up crypto payments

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Jul 26, 2021
  • Amazon stock price surged 1% on Monday morning after reports the company is lining up crypto payments.
  • Several reports pointing to insider sources said AMZN is also planning to launch a crypto token.
  • It could be a game-changer for the e-commerce giant. So, is it time to invest in AMZN shares?

Amazon.com Inc. (NASDAQ:AMZN) shares surged 1% on Monday morning amid reports the company is lining up bitcoin payments and a crypto token launch. The giant online retailer could tap into a rapidly growing market by embracing cryptocurrencies. 

City AM cites an inside source saying:

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This isn’t just going through the motions to set up cryptocurrency payment solutions [in the future] – this is a full-on, well-discussed, integral part of the future mechanism of how Amazon will work.

According to the report, the directive comes from the very top, Jeff Bezos himself. 

The bitcoin (BTC/USD) price spiked more than 18% over the last five days to trade above $39,000. It pulled back slightly Monday morning before rallying again to $39,100 at the time of writing. 

Should you invest in Amazon shares in Q3 2021?

Although Amazon’s price rallied to a new all-time high this year, shares still trade at a forward P/E ratio of about 50, suggesting a fair valuation for a high-growth stock. Analysts expect AMZN earnings per share to grow by approximately 82% this year before increasing 29.50% next year. 

The company’s average annual EPS growth of about 37.93 for the next five years is compelling to growth investors. Moreover, its expansion into crypto could give it a new dimension to increase revenue and earnings, making it one of the best stocks to buy now.

Source – TradingView

Technical overview: why buy AMZN shares in August 2021?

Technically, Amazon.com shares appear to have spiked closer to this year’s highs following Monday’s reports. 

Today’s gains extend last week’s bull run, and the stock price has now moved closer to overbought conditions of the 14-day RSI.

Therefore, investors can target extended gains at approximately $3,757. However, those eager for a pullback to take place before buying will target opportunities at the support levels, $3,641 and $3,559.

Bottom line: the catalyst for buying Amazon shares now

In summary, although AMZN shares are trading near historical highs, Monday’s reports about launching a crypto token and accepting bitcoin payments could provide a catalyst for the current bull run to continue. 

Therefore, the stock price may not pull back to the desired support levels. It could instead rally to retest this year’s highs before setting a new historical high.

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