Key insights
- The author is considering selling AMZN shares before earnings due to concerns about cash flow related to long-term investments, despite a positive average cost basis. They anticipate potential upside to $280-290 but are weighing the risk of disappointing earnings. This reflects investor uncertainty regarding Amazon's near-term profitability versus long-term growth strategy, potentially creating short-term volatility.
I've been buying amazon stock for the last year pretty much at every dip under 200 with an average cost of around 180 per share. Obviously I'm very satisfied with where the price is right now. My gut is telling me earnings will not impress due to the amount of cash flow being spent on long term investments. However, I can't help but think that a more optimal buy out price is still in place around the 280-290 level. For the amount of shares I own, the price difference between 265 and even 275 is pretty stellar. What are you planning on doing with your AMZN shares?