🚀 Today's Big Ideas: Amazon (+9%), Target (+8.5%), Netflix (+9.5%)
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TODAY’s Big Ideas:
Score 7.5 (out of 10): AMAZON is poised for a +9% rally in 3 months
Score 8.3 (out of 10): TARGET sets up for +8.5% rally in 2 weeks
Score 9.1 (out of 10): NETFLIX to seasonally rally by +9.5% during the next 60 days
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(1) Score 7.5 (out of 10): AMAZON is poised for a +9% rally in 3 months
What’s Going On Here?
Amazon is holding its second Prime Day shopping event in a year for the first time this week in a bid to boost its flagship ecommerce product and reverse declining sales
Why Now?
AMAZON.COM has reached a new medium term low. Previously, during similar occasions, AMAZON.COM shares had a median return of +9%, over the following 3 months based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for AMAZON.COM received a high score of 7.5 (out of 10). This insight was generated on 2022-October-11 with last price of 112.21.
What’s This Company About?
AMAZON.COM is in the E-Commerce/Products business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: AMZN US.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 122.31 (+9%) has been reached. Based on AMAZON.COM’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 105.91 (last price at 112.21), which is equivalent to a -5.6% decline.
Returns during similar periods:
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(2) Score 8.3 (out of 10): TARGET sets up for +8.5% rally in 2 weeks
What’s Going On Here?
Walmart and Target are offering heavy discounts on select items to offload their excess inventories, well ahead of the holiday shopping season. The retailers hope to attract customers who are feeling the pinch from the tough macro backdrop.
Why Now?
TARGET has triggered a new technical analysis ‘rally reversal’ signal. During similar occasions, TARGET shares had a median return of +8.5%, over the following 2 weeks – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for TARGET received a high score of 8.3 (out of 10). This insight was generated on 2022-October-10 with last price of 153.1.
What’s This Company About?
TARGET is in the Retail- Discount business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: TGT US.
What’s My Risk / Reward and Time Horizon?
We found 2 weeks to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 166.18 (+8.5%) has been reached. Based on TARGET’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 146.4 (last price at 153.1), which is equivalent to a -4.4% decline.
Returns during similar periods:
You might also like: Score 7.3 (out of 10): APPLE sets up for +6% rally in 1 month
(3) Score 9.1 (out of 10): NETFLIX poised to seasonally rally by +9.5% during the next 60 days
What’s Going On Here?
Netflix has recently revealed its annual revenue from UK subscribers for the first time – £1.4bn in 2021 – after changing its accounting practices. Netflix’s main UK business also reported a 1,630% increase in revenues last year, up from only £79m in 2020.
Why Now?
NETFLIX indicates an interesting 60 days seasonal set up. During similar occasions, NETFLIX shares had a median return of +9.5% – based on 9 historical occasions with 9 of those showing positive returns (100%). This buy signal for NETFLIX received a high score of 9.1 (out of 10). This insight was generated with last price of 229.98.
What’s This Company About?
NETFLIX is in the Internet Content-Entmnt business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: NFLX US.
What’s My Risk / Reward and Time Horizon?
We found 60 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 251.93 (+9.5%) has been reached. Based on NETFLIX’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 215.18 (last price at 229.98), which is equivalent to a -6.4% decline.
Returns during similar periods:
For more investment insights, please visit us at www.LongShortBets.com