It pays no dividend, nor is it likely to in the foreseeable future. The close of $1,893.63 on June 28 was an important input to my proprietary analytics and resulted in the following key levels. Amazon leaped as much as 4.8% on Tuesday, breaking through $3,000 per share to record highs. AWS has transformed corporate IT and helped unleash a wave of upstart e-commerce companies across the country and around the world. To answer that question, you have to judge whether Amazon.com Inc. (Nasdaq: AMZN) stock actually is expensive, or just seems expensive. In 10 years, Amazon stock will be worth much more than it is today. Then came the "sell in May and go away" strategy as the stock slumped by a correction of 14.8% to a June 3 low of $1,672.00. As I have been writing since 2014, and repeated many times here, Amazon is an infrastructure company. But CEO Jeff Bezos announced in June that he would spend $300 million in India to fund movies and series ideas. Only since the pandemic lows has it really broken out to its July 15 price of $3,050. The world of 2021 will be vastly different from that of 2019. How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings was based upon backtesting many methods of reading share-price momentum with the objective of finding the combination that resulted in the fewest false signals. As of the end of the day on Thursday, Amazon stock … Amazon's stock is up sharply in after-hours trading. In order to understand why Amazon’s stock is priced so high, we could compare the company with another well-known business that has a similar market capitalization: Microsoft . Amazon stock just broke out of "a big multiyear consolidation" and is showing "very positive momentum" heading into its July 23 earnings announcement, he said on CNBC. Amazon's revenue sources are diverse and impressive, and will help the Amazon stock price continue to climb. Amazon Prime memberships continue to grow. The prices of cloud offerings can decline over time  And AWS is the business that actually drives the majority of Amazon’s earnings. Amazon Studios: a developer of television shows and movies that are distributed through Amazon Video, Amazon Fresh: a grocery delivery service that costs Prime members an additional $14.99 per month, Audible.com: a source for digital audiobooks, radio, TV programs, and audio versions of newspapers and magazines, ComiXology: a cloud-based digital comic platform, Twitch.tv: a live-streaming video platform, Internet Movie Database (IMDb): an online database for films, television shows, and video games. Amazon reported strong earnings on April 25, and the stock responded by setting its 2019 intraday high of $1,964.40 on May 3. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. That means Amazon's profits should increase. But that's only one of the reasons why Amazon stock seems so expensive. It doesn’t seem a coincidence that Amazon stock price has gone in the opposite direction of its mega-cap tech peers since one-day shipping was announced. The stock reached an intraday high of $3,030.23. A rally in July left AMZN stock less than 1% below last year’s peak. Rather, I believe investors are reacting to very real changes surrounding Amazon’s business. But as the stock charts show, they’re excited about Microsoft, Target, Walmart, and Disney (NYSE:DIS), not AMZN stock. It did this without a change in its fundamentals. ET Monday. Investors eyeing the stock should monitor the company's margins and Amazon Web Services performance against rivals, Tengler added. In a world where trillions of idle dollars are looking for a return, a business model that works in the pandemic is a pearl of great price. The crown does hang heavy on Bezos’ furrowing brow. In this case, Amazon is both an expensive stock in terms of its stock price and its valuation standpoint. Bulls like myself had assumed that Amazon could become more profitable whenever it chose. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Amazon Web Services, its cloud network, lets tens of millions work from home productively. (Below is Investopedia's original earnings preview, published July 23, 2020.) One-day shipping costs will be offset by growth and potentially by cost reductions as the company continually improves its infrastructure. In 2015 alone, its shipping revenue amounted to $6.52 billion, according to research site Statista. Critics are focused on that market cap, and the portion held by founder Jeff Bezos is now worth $182 billion. "If I just look at a chart and sort of measure things out … $3,400, $3,500, sort of at minimum, seems like a price objective of where this stock could ultimately go. Amazon reported strong earnings on April 25, and the stock responded by setting its 2019 intraday high of $1,964.40 on May 3. I’ve been bullish on AMZN stock for a long time, arguing two years ago that Amazon.com should be the world’s most valuable company. What is surprising is that AMZN stock is falling at a time when the stock market is strong. Gallery: 15 Red-Hot Online Retail Stocks Soaring High in 2020 (InvestorPlace).