Amazon.com, Inc. (NASDAQ:AMZN) has risen more than 23% since the start of the year as investors have bought the stock back up after it fell hard late last year. While it hasn’t yet reached the $2,000 mark again, it’s come close and could be headed in that direction before long. Trade issues with China have unfortunately derailed Amazon and other tech stocks for the time being, but if we see progress on that front, the stock could be rallying soon.
With another strong quarter that showed revenues up 17% year over year and profits more than doubling, it helped rejuvenate the stock. It was the second straight period where Amazon’s profits reached over $3 billion even though sales failed to meet expectations.
Although the stock is still pricey, trading at nearly 20 times book value and more than 75 times earnings, it’s still an improvement from when it was trading at a price-to-earnings ratio in the triple digits. While that doesn’t make the stock cheap, it does certainly suggest that investors could be willing to pay more for the stock and there could be room for it to rise even further.
It was about a month ago that Amazon’s stock made a very bullish crossover, with its 50-day moving averaging (MA) rising above the 200-day MA, signaling a golden cross which could lead to more buying activity.
With the markets looking stronger, I’d be surprised if Amazon didn’t bounce back to over the $2,000 mark within the next month, unless of course we see China-U.S. trade issues worsen.
