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Buy Amazon stock on pullbacks in 2019, says this investor

BCE

Brian Acker
If you’re not into retail arbitrage, at least there’s money to be made on owning Amazon stock (Amazon Stock Quote, Chart NASDAQ:AMZN), says Brian Acker of Acker Finley, who argues that patient investors should be waiting for another pullback.

AMZN seemed like an unstoppable force over the past few years, pushing up from the $600 range back in early 2016 to flirting with $2,000 by mid-2018. (All figures in US dollars.) Then came the great tech selloff starting in early fall which saw most of the well-known names take major hits, including Amazon which dropped 33 per cent between October 1 and December 24.

A January rally helped somewhat but the market seems less confident about stocks like Amazon than it has in the past, says Acker, CEO and chief investment strategist at Acker Finley.

Wishpond

“As a straightforward investment, I would love to see this pull back to $1369.00. With all of the stocks that I love and I look for, I always want that pullback and certainly I think that this year and in this market, you’re going to get lots of pullbacks,” says Acker, in conversation with BNN Bloomberg on Friday.

“It was actually down close to there at the end of December. Hopefully, it now comes back,” he says.

Amazon’s share price took a hit after the company issued its latest quarterly report on January 31, beating consensus estimates on both earnings and revenue yet causing investors concern with its first quarter guidance which stated that revenue should come in between $56 billion and $60 billion, below the consensus expectation of $60.8 billion. The company said that it expected a period of increased spending across hiring and capital expenditures during 2019, following on a period of slower investment in 2018.

Disclosure: Cantech Letter editor Nick Waddell owns shares of Amazon

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About The Author /

Jayson MacLean
Jayson is a writer, researcher and educator with a PhD in political philosophy from the University of Ottawa. His interests range from bioethics and innovations in the health sciences to governance, social justice and the history of ideas.

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