Tags: Amazon | Shares | Stock | one thousand dollars

One Trader's Prediction: Amazon Shares Will 'Blast Off' to $1,000

(AP/Paul Sakuma)

By    |   Wednesday, 05 April 2017 09:23 AM

One trader predicts Amazon.com Inc.’s stock price can easily hit $1,000 and much higher in the near future.

AlphaShark trader Andrew Keene told CNBC that Amazon is "heading to $1,000" based on what he sees in the daily and weekly charts.

He emphasizes that since Amazon's rally is so "parabolic," he needs to use a shorter time frame to predict the stock's movement.

But Keene's main reasoning for betting on a rally up to $1,000 lies within the stock's weekly chart. According to Keene, every time the stock has hit the 20-week moving average, it has been bought and headed higher, a trend that the trader believes will keep repeating itself.

"I think Amazon will be bought on any pullback whatsoever," Keene told CNBC as the stock will eventually head higher even if there's a drop.

But since the $1,000 level is 10 percent above Amazon's current price, Keene does have a way to trade Amazon in case the stock doesn't carry its momentum in the short-term. In this case, Keene wants to take the old "support" level of $860 and sell the May monthly 860-strike put while buying the May monthly 850-strike put for a credit of $2.5.

If Amazon closes above $860 on May 19 expiration, then Keene would keep the $250 credit from making the trade. But if Amazon were to close below the breakeven of $857.50 on May 19, then Keene would lose money on the trade, and would be out $750 if the stock closes below $850.

Amazon has soared more than 20 percent year to date, gaining about 7 percent since the end of March alone.

Meanwhile, Amazon will live-stream games for the U.S. National Football League this year, a company spokeswoman said, marking a high-profile push by the online retailer to attract fans to its Prime shopping and video-playback club, Reuters reported.

As part of the deal, Amazon will stream 10 Thursday-night games online for Prime members exclusively. The same games will be broadcast by networks CBS and NBC on television.

Amazon beat out Twitter Inc., Facebook Inc. and Google's YouTube for the digital distribution rights, according to a person familiar with the matter.

The Seattle-based company agreed to pay the NFL five times what Twitter spent on the rights last year, which was reported to be $10 million, the person said.

The deal underscores a key strategy Amazon has to win a greater share of shoppers' wallets: offer benefits like fast shipping and video-streaming so people sign up for Prime and, consequently, turn to Amazon for more of their purchases.

While the Seattle-based company has streamed live events in the past, the NFL may be its biggest stage yet, and reflects Amazon's push beyond its mainstay of on-demand video.

(Newsmax wire services and Reuters and Bloomberg contributed to this report).

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One trader predicts Amazon's stock price can easily hit $1,000 and much higher in the near future.
Amazon, Shares, Stock, one thousand dollars
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2017-23-05
Wednesday, 05 April 2017 09:23 AM
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