Friday, March 1, 2024
Hometalking numbersWhy Amazon could hit $500 this year: Strategist

Why Amazon could hit $500 this year: Strategist

Amazon isn't just a retailer and they want the world to know they mean business.

The company just announced a deal with CBS that would allow its Amazon Prime customers unlimited streaming of the new series "Extant" for four days after their broadcast. Premiering in June, the show stars Halle Berry and is produced by Steven Spielberg's Amblin Television.

According to CNBC contributor Gina Sanchez, founder of Chantico Global, this deal is part of Amazon's threat to one of its biggest rivals' market dominance.

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"Amazon is a huge winner in this content deal," says Sanchez. "The Prime Instant service, which is where this content is being delivered, is really starting to challenge Netflix. And by developing this new content…. [it is] really starting to really make a huge dent in what Netflix has built. I think Amazon Prime has an enormous growth that could come off of this."

Sanchez is bullish on the Amazon's stock despite the fact that it trades at more than 152 times next year's expected earnings. Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, says the charts back up her viewpoint.

(Watch: Buzz over new HD TVs)

"Amazon, an incredible success story by any measure and I think that strength is likely to continue through 2014," says Ross. "I see another $100 of upside perhaps for this stock here."

Ross' optimism with the stock is fueled by a "breakaway gap" that occurred in November. "Typically, that breakaway gap occurs near the beginning or middle of a move, which suggests that we go higher," says Ross. "I love this stock here on just the charts alone. I would be a buyer. As I said, don't worry about the $400 number, this is a stock that could see $500 by year-end."

To see the rest of Sanchez's fundamental look and Ross' charts on Amazon, watch the video above.

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