Amazon.com (AMZN) NewsBite - AMZN Rises on CEO's Comments

Posted on Friday, April 18, 2008 10:04 AM
Amazon.com (AMZN) opened at $76.48. So far today the stock has hit a low of $76.32 and a high of $77.91. AMZN is now trading at $77.40, up 3.36 (4.54%). After hitting a one-year low of $44.16 last April, the stock hit a one-year high of $101.09 in October. Shares of AMZN are rising today after CEO Jeffrey P. Bezos said in a letter to shareholders that he very pleased with AMZN's new electronic book-reader Kindle. He added in the letter that all major publishers have embraced the device, demand for the Kindle has been high, and that shareholders should expect more innovation from AMZN. The Kindle is currently out of stock, but AMZN expects to have more devices in stock next week. Technical indicators for ERTS are neutral and improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a May bull-put credit spread below the $60 range. AMZN hasn’t been below $60 since almost a year ago and has shown support around $70 recently. This trade could be risky if the company's earnings (due out in on 4/23) disappoint, but even if that happens, this position could be protected by the support the stock might find around $62, where it bottomed out in February and March. [LHF- Seven Summits Strategic Investments NewsBite]
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