(Figure): Daily chart for Amazon.com, Inc. (NASDAQ:AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) was one of the notable gainers in yesterday’s trading session surging by close to 3 percent on back of news that the company would be acquiring Twitch – the online live streaming gaming network which is being seen as a tool being used by the company to transform itself into an internet destination of choice and move away from the image of just being a core online retailing giant.
The company would be acquiring Twitch Interactive for $970 million as per a press release from the company. The acquisition would be the biggest ever for Amazon.com, Inc. (NASDAQ:AMZN) in its 20 year history and would help it to compete with companies like Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) in the fast growing online gaming market which accounts for more than 75 percent of mobile apps market.
Analysts are seeing this as a huge positive for the company which had recently launched its first smartphone- Amazon Fire. It is important to know that Twitch was also being courted by Google Inc before Amazon.com, Inc. (NASDAQ:AMZN) snapped up the company.
Technically speaking, the company has been quite volatile over the last couple of weeks and the stock has taken support at its 50 day moving average which currently stands at $331.90. The price action in yesterday’s trading session was on back of high volumes is seen as a huge positive. The only cause of concern for traders would be the fact that the stock found resistance at higher levels and could not close at the highs of the day. The momentum indicators for Amazon.com, Inc. (NASDAQ:AMZN) have given a fresh buy signal which is indicative of the shift of momentum towards the buy side.
Traders can go long on Amazon.com, Inc. (NASDAQ:AMZN) with a strict stop loss at $331.75 with a primary target at $449