The recent rally is an ideal bounce-back, especially for technology stocks like Amazon that had a forgettable 2022. Analysts like Amazon’s long-term prospects, which could help set up traders for a bullish skew in 2023 when considering the stock.
While inflation hurt a number of big tech companies, Amazon is responding to improve its long-term forecasts. The online retail giant is taking the necessary steps to ensure that it can remain profitable whether inflation decides to take a lengthy stay in the current macroeconomic environment or not.
“Amazon’s first-quarter sales growth outlook of 4% to 8% reflects further deceleration compared with the 9% growth in the fourth quarter,” a CNBC report noted, which also highlighted analysts’ views on their bullishness towards Amazon stock. “Amazon is streamlining costs as it faces slowing top-line growth, higher expenses and continued economic turmoil.”
The report also noted that Mizuho Securities’ Vijay Rakesh foresees a lot of price fluctuations ahead for Amazon. Lower demand for its cloud business could instigate “volatile near-term given potential downside revision risks.”
Bet on Amazon Volatility With These ETFs
Given the forthcoming volatility that tech stocks can bring investors, especially now that a lot of market unknowns still remain, it helps when traders can take a bullish and bearish side. That’s available with leveraged exchange traded funds (ETFs) from Direxion Investments that offer a drop of leverage for potential profit maximization when a position goes a trader’s way.
Single-stock ETFs can give investors this exposure without having to use a margin account. It’s all available in the convenience of an ETF with two flavors for those seeking to trade Amazon stock: the Direxion Daily AMZN Bull 1.5X Shares (AMZU) and the Direxion Daily AMZN Bear 1X Shares (AMZD).
For the former, AMZU seeks 150% exposure to Amazon stock, giving bullish traders that added leverage in order to extract more gains from their convictions. The latter, AMZD, provides inverse exposure to Amazon stock so trades can easily profit from the downside for any negative market movers like a worse-than-expected earnings report.
As of February 15, AMZU is skewed to the upside, at least in the short-term technical standpoint. The fund is trading above its 50-day moving average, showing signs of near-term strength, but below its 200-day moving average, which could provide an area of value if traders sense the stock will move higher in the long run.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.