Amazon.com, Inc. (NASDAQ:AMZN) stock broke above its prior lifetime high to hit $724.23 in yesterday’s trading session. And according to Ari Wald, technical analyst at Oppenheimer, the post-earnings momentum that’s showing little signs of receding, should lift shares to $800.
Shares closed Tuesday at $423, up 1.5 percent.
Amazon.com, Inc. is Shining in a Dull Market
As Amazon continues its surge higher, rival tech giants are struggling. Apple and Microsoft, in particular, have been the worst hit, with both their shares tumbling to multi-year lows. That’s what makes the Amazon rally even more spectacular, Wald reckons.
“What is telling for me about the charts is, here is a stock breaking at new highs while the rest of the market is still dealing with resistance from May of last year,” he noted on CNBC. “This is evidence of the relative strength of this stock.”
AMZN shares are up close to 70 percent in the past one year. This quarter alone, the stock has soared over 20 percent.
However, not every analyst believes the Amazon out performance provides opportunity for long term investors. Eddy Elfenbein, editor at the popular Crossing Wall Street blog, is one such skeptic, who recommends investors to stay away from the stock.
“Whatever it is, whatever the market is doing, they’re following different rules,” he said. “They made $1.25 per share last year…that gives them a P/E of $577. It’s a different game, I can’t rationalize that. That’s why I’d stay away, there are better opportunities elsewhere.”
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Tech in General Seems Ripe for a Rally
Those opportunities, Eddy Elfenbein says, will likely unfold in the tech space. The SPDR Technology Sector ETF once again inches closer to the strong resistance around the $45 zone. And Elfenbein thinks the likelihood of an upside breakout seemS strong.
“For the most part, tech stocks reported pretty good earnings,” he said. “Only 18 percent of tech stocks in the S&P 500 missed earnings…and the earnings outlook has (also) improved very much for tech stocks.”
The XLK ended yesterday’s trading session at $44.19, just below the key $45-mark.