On Monday Amazon.com Inc. (NASDAQ:AMZN) shares gained more than 2% as analysts maintained a strong holiday season sales forecast. With Black Friday sales spiking to record levels, the market expects Cyber Monday to follow the same pattern, thus boosting holiday season sales forecasts.
The Bank of America analysts said they expect this year’s holiday season to be significantly higher than last year’s.
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Amazon shares are up more than 12% since the 4th of Octoberdespite pulling back nearly 3% in recent trading sessions.
Amazon is still an exciting growth stock
From an investment perspective, Amazon shares seem to be trading at steep valuation multiples, making the stock less attractive to value investors.
However, its growth prospects are exciting, with analysts forecasting an EPS growth of nearly 82% this year and annual growth of 36% over the next five years.
Therefore, although the stock seems significantly overvalued, long-term growth investors could find it as a compelling option for their portfolios.
Technically, Amazon shares seem to have recently pulled back to find the trendline support of an ascending channel formation.
As a result, investors could target potential rebound profits at about $3,713, or higher at $3,854. On the other hand, if the decline continues, thus completing a downward breakout, the stock could find support at about $3,460, or lower at $3,302.
In summary, although Amazon shares seem significantly overvalued, long-term investors could be interested in its growth prospects.
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