The stock market is a non-stop monster. I used to think it was a joke when people said stocks only go up, but recent history is really starting to make me question myself. Among many other big names, jeff bezos's brainchild amazon has been continually posting new highs. In fact, it just officially closed above 3500 for the first time what is going on moon gang, i hope, you're having a great day.

My name is matt and in this video i will be discussing some big news that just came out about amazon and why i plan on buying even more shares of amazon in the near future. If you want to join an awesome community hit the subscribe button to become a member of the moon gang and don't forget to turn on your notifications, so you don't miss any of the new videos. It would also be truly appreciated if you could hit the like button, because it really helps with the youtube algorithm alrighty then now that we got that out of the way let's get started now i don't want to waste any of your time. So, let's dive right into the big announcement on august 31st, it was announced that amazon won federal aviation administration approval for prime drone delivery fleet.

The approval will give amazon broad privileges to safely and efficiently deliver packages to customers according to the faa. It doesn't take a wall street analyst to realize that this approval will make amazon even more dominant in the retail marketplace sector. This milestone is so important because it will allow amazon to expand to unmanned package delivery. This certification is an important step forward in prime air and indicates that the faa's confidence in amazon's operating and safety procedures for an autonomous drone delivery service that will one day deliver packages to our customers around the world.

We will continue to develop and refine our technology to fully integrate delivery drones into the airspace, and we will work closely with the faa and other regulators around the world to realize our vision of 30 minute delivery. Let me say that one more time: 30 minute delivery. Here i was thinking that two day delivery is insanely fast, but amazon is now putting the pieces in place to get you your packages in less than one hour. This is absolutely bonkers.

Now, granted amazon is still in the early stages of their drone delivery. So will most likely take a few years before it becomes common practice, but what a concept? This is obviously a really cool, technological advancement and great news. But let's take a step back to appreciate what else amazon has going for it unless you've been living under a rock. You already know that amazon.com dominates the e-commerce space beyond that amazon's in the video streaming world with prime video.

They deal with groceries through their ownership of whole food markets and they're, even now getting into the healthcare sector. This is just a small portion of all the things that amazon is currently dealing with, but what makes me most excited to be an investor in this company is their cloud services. Amazon web services, also known as aws, provides on-demand cloud computing platforms and apis. I know that this is confusing to many and it might make you scratch your head and wonder what in the hell is this, but all you really need to know is that this is extremely important in the world of software and technology.

I work as a software engineer and i legitimately use aws on a daily basis. Aws has been an absolute game changer in the fields of analytics, blockchain data, storage and machine learning, just to name a few. So not only is this important to present day technology, amazon is actually dominant in the cloud computing sector. In the most recent earnings announcement, amazon reported that aws had a revenue of 10.8 billion, which represented a 29 growth.

This chart represents how big of a player amazon actually is. Amazon is represented by the dark blue and, as you can see from these three quarters, it has the largest cloud market share, and on top of that, the amount of money spent on cloud computing has only been going up. In q2 of 2019, a total of 26.3 billion was spent and in q2 of 2020, 34.6 billion was spent. So, to sum this all up cloud computing is a massive sector that is still growing, and amazon is the largest player within the sector.

In other words, not only is amazon dealing with groceries, healthcare and video streaming, it's dominant in both e-commerce and cloud computing. With all that being said, it should come as no surprise that wall street is very bullish on amazon, with one being very bearish and five being very bullish. The average analyst rating is 4.64 and out of 48 analyst ratings 45 are some form of bullish. At the time i'm making this video amazon is trading just above 3500 and the average analyst price target is just below 3 700..

But honestly, i think it has even more potential than that from 2015 until now, amazon's total revenues have tripled from 107 billion to 321 billion. In that same time, period, their gross profits have more than tripled, by going from 35 billion to 129 billion and in a similar manner, amazon's net income has exploded in 2015, amazon made 600 million and now they're raking in more than 13 billion. This type of growth is exactly what you want to see as an investor. Before we take a look at amazon's technicals, i want to take a moment to discuss one interesting idea from a nominal perspective.

Amazon is expensive. Each share costs 500 and in terms of a p e ratio, amazon is more expensive than apple, but it's cheaper than tesla. I'm bringing this up because i think there's a decent chance that amazon decides to go through with a stock split. I mean seriously look at the landscape during the time period between the announcement and the actual stock split apple went up 34 and tesla went up an incredible 81.

I know stock splits, don't fundamentally change anything about a company, but this recent president has to be intriguing to bezos and it also wouldn't be the first time that amazon's gone through a stock split. The company had three separate splits before the year 2000, just some food for thought now: let's pivot to amazon's technicals, amazon trades under the stock, ticker amzn and from the start of 2020. Until now, the stock is up just over 90 percent and, as you can see from mid-march until now, it's been following this blue trend line in a pretty perfect fashion. Let's zoom in so we can get a better idea of the upcoming support and resistance.

If you've watched any of my previous videos, you know i'm a big proponent of investing as close to support as possible. As things currently stand, the first support would come at this trend line. If the stock fails to bounce off of this, you could then watch the previous resistance of 3380.. If the bears managed to push the stock below this, you could then look for a bounce off of the 3250 area and, if you're looking for a reach target, there's a lot of consolidation in this area and there's also the key psychological level of 3000.

But the final line in the sand would come at 2888. I wouldn't hold your breath for this final support, but i would personally be happy to pick up more shares at any of these first three, it's hard to pick out a technical point of resistance, because the stock is now at a new high, but i can share Where i'm looking to take profits at my bottom, profit target would come at 3750, but i wouldn't be surprised in the slightest if amazon runs all the way up to 4250.. I'm not randomly throwing these numbers out there. Amazon's growth and free cash flow make a strong case for the stock getting into this region.

These are my personal opinions and i'm not a financial advisor, but i would love to know your thoughts in a comment below if you made it this far in the video you're a rock star in my book, and i truly appreciate your support. If you have any suggestions or recommendations, let me know i promise to respond to all of you. If you're interested in joining a trading group where we talk about this type of stuff on a daily basis, i would recommend smd training, there's a link in the description of this video. If you enjoyed the video or found value in it.

Let me know by hitting the like button and if you want to join the moon gang subscribe to the channel and don't forget to turn on your notifications, thanks for watching and until next time best of luck in the markets. You.