Amazon Spread Betting and CFD Trading Guide

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Shorting Amazon? Don’t Get Short-Sellers Remorse

Think twice before short-selling Amazon on the back of the article.

The current price is being driven on future potential and rather than whether the current valuation is realistic.

If you short the stock you might be standing in front of a freight train.

And if you buy the stock? You run the risk of quick pull backs and large price adjustments.

27 October 2017: Amazon Share Price Jumps Q3 Data

The Amazon share price jumps because investors were expecting smaller profits

  • trending_upQ3 2017 profits up to $256m compared to $252m for Q3 2016
  • trending_upQ3 revenues up 34% to $43.7bn (up 29% without Whole Foods)
  • trending_flatProfits pretty flat with more money spent on infrastructure, gadgets and streaming video
  • infoJeff Bezos, CEO, said revenues were up on Amazon’s home products like Alexa and it sounds like they are investing a lot more in Alexa
  • infoDon’t forget that Amazon bought Whole Foods in August 2017. The grocer saw Q3 revenues of $1.3bn
  • infoNumber of the day: Amazon employs nearly 542,000 full and part-time staff. Wow.
  • warningThe PE ratio at 247 is still horrendously high and big warning signal for buyers

26 March 2017: Amaze Amazon!

There’s a good article in this week’s Economist on how over-priced the Amazon stock is (see link below).

The article might not be great for short-term traders, it is more focused on Amazon’s long-term threats and potential.

However, it’s an interesting read for anyone looking at the stock and it does highlight how overvalued the current Amazon share price is.

Amazon in Numbers

  • arrow_forwardMarket capitalisation: $400bn
  • arrow_forwardIt’s the fifth largest company in the world by Market Cap
  • arrow_forwardPE Ratio: 173.13 = off the charts
  • arrow_forwardShare price: $846 (not far off the 52 week high of $862.79)
  • arrow_forwardAccording to The Economist the firm now “accounts for more than half of every new dollar spent online [in the US]”.
Yes, yes, yes, that is correct. The above is not a typo.

As of 26 March 2017, the PE ratio is a comedy 173.13 when the tech giant’s share of online revenues is already very high.

Just to confirm, the current PE ratio for the S&P 500 index is 15 and that is considered high / a warning signal.

For more see Are investors too optimistic about Amazon?

Where Can I Spread Bet on the Amazon Share Price?

  • arrow_forwardCity Index
  • arrow_forwardETX Capital
  • arrow_forwardFinancial Spreads
  • arrow_forwardIG
  • arrow_forwardInterTrader

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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