Amazon (NASDAQ: AMZN) Throws More Kindling On The Fire

Amazon.com (NASDAQ: AMZN) shares have continued to rally showing incredible strength. The stock is up over 37% in the last 3 months, and closed today at $168.47, approximately 3 points away from its 52-week high. Amazon also trades above its key moving averages which continues to be a bullish sign for most technical investors. Amazon continues to grow its retail business, offering various departments including Sports & Outdoors, Grocery, Health & Beauty, and Downloads. The company's Kindle device continues to sell strongly as well. Amazon is also seen as a cloud computing play, as the company allows businesses and individuals to rent shared space on Amazon's servers. these users only pay for what they use, making it attractive to businesses and individuals looking to cut down on costs.

Amazon Goes Fishing (NASDAQ: AMZN)

Amazon.com, Inc. (NASDAQ: AMZN) announced today that it will be purchasing fashion and lifestyle company, BuyVIP.com. BuyVIP.com has over six million members in Spain, Germany, and Italy as well as other countries around the world. The online buying community offers its customers time-limited campaigns for top fashion brands and styles at inexpensive prices compared to the competition.

“We are excited about joining the Amazon family," said CEO of BuyVIP.com, Gustavo Garcia Brusilovsky, who believes the merger will allow his company to offer its members an even broader selection of high-quality products.

Amazon.com's stock has been a high-flier. The stock has pulled back from it's recent 52-week high, but still maintains a 64 PE ratio as the company expands at a rapid pace.

A Bet Against The Environment

The tech bubble is long gone but their are still tech bubbles and a bubble is bad for the environment. Amazon has surpassed a 70 billion dollar market cap which is similar to that of Ebay in 2005 when investors felt Ebay was the future. What happened was Ebay's business went into maturity and its stock has dropped over 60% despite improving profits. Amazon will need to prove a lot in the next few years to not go down the Ebay path.

Edwards recommended selling shares of Amazon. To see his full report Click Here