2 Ways to Trade Amazon Ahead of October's Prime Day

Core Viewpoint - Amazon.com Inc. is currently facing resistance around $240, with shares trading just above $220, indicating a pivotal moment for the stock as it approaches all-time highs [1][4]. Upcoming Events - The company's Prime Deal Days event is scheduled for October 7-8, which is expected to catalyze sales and potentially boost stock momentum [2][7]. Bullish Expectations - Analysts are optimistic about the upcoming Prime Day, with Truist Financial maintaining a Buy rating and raising its price target to $270, while Wedbush has an Outperform rating with a $250 target, suggesting a potential upside of 20% from current levels [3][4]. Investment Strategies - Strategy 1: Buy Ahead of Prime Day Momentum - Investors are encouraged to buy shares before the event, anticipating that historical trends will repeat and drive consumer spending and Q4 earnings momentum [5][8]. - Early participation allows investors to benefit from a potential breakout above $240, targeting the $270-$280 range [9]. - Strategy 2: Wait for a Confirmed Breakout - A more cautious approach involves waiting for a high-volume breakout above $240, which would signal a stronger bullish trend and mitigate the risk of a triple-top formation [10][11]. Market Analysis - Amazon's MarketRank is in the 98th percentile, with a Buy rating and a projected earnings growth of 17.91%, indicating strong market sentiment [6][7]. - The company is expanding aggressively into high-growth sectors like advertising and cloud computing, supported by a favorable macro environment for tech stocks [8].