Considering shares of Amazon are trading right around their 52-week highs, how should you game this stock into and after earnings on Thursday.
Seems like a good time for Fast Money 360. Find out what fundamentals, technicals and insights from the options world all suggest lie ahead for this stock!
Fundamentals
Citi analyst Mark Mahaney is modestly bullish.
“We're buyers into the print,” he tells the desk. “We like the fundamentals here. We think the earnings could prove to be a modest catalyst.”
Although Mahaney thinks Amazon’s Kindle may have trouble competing with the iPad, he thinks concerns are overdone.
“Yes, there's an overhang issue here… (but) we think the core fundamentals for Amazon are well in tact; we think the long term thesis is well intact.”
What’s the bottom line?
“We're buyers!” says Mahaney.
Charts
Technical analyst John Roque of WJB is also bullish.
He tells the desk, “Amazon has been a favorite of ours at WJB for a long time. We've had it on our focus list since last spring.”
From a technical perspective Roque likes what he sees; citing both an uptrend and the fact that the stock broke out last year. “We think the trend is really pristine,” he says.
Roque adds that his price target for the stock lies between $160 and $175 and he’s a buyer on any pullback or any consolidation.
Options
Pete Najarian is also positive on Amazon and interprets options action to mean the stock could move as much as 10% after earnings.
”I see the May 160 calls getting a lot of activity,” he explains. “People are pricing in about an 8-10% move for Amazon earnings already” with the call buying suggesting the move will be higher.
What else should you know?
It’s very difficult for me to own this stock at current valuations, says Tim Seymour.
I think the fundamentals are phenomenal says Joe Terranova. I think the stock goes to $150 off the earnings.
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Trader disclosure: On Apr 21, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Is Short June 2010 Crude Oil; Terranova Is Long December 2011 Crude Oil; Terranova Is Short Australian Dollar; Terranova Is Short Japanese Yen; Terranova Is Short Gold; Terranova Is Short (PCLN); Terranova Is Short (BRE); Terranova Is Long Japanese Yen; Terranova Owns (C), (XCO), (SWN), (TER), (HES), (AXP), (XCL); Terranova Owns (C) May Calls; Scaramucci Owns (GS), Skybridge Owns (GS); Najarian Owns (C) Calls;Najarian Owns (CLF) Call Spread; Najarian Owns (GLW) Call Spread; Najarian Owns (MRVL); Najarian Owns (UNP); Najarian Owns (YHOO) Call Spread; Kelly Owns (CXW) Calls; Kelly Owns (FXE) Puts; Scaramucci Owns (CIT), Skybridge Owns (CIT)
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For Mark Mahaney
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(AMZN) Is Or In Past 12 Months Was A Client Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
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