Rich Ross, technical analyst at Evercore ISI, warns that Amazon.com Inc.’s share price is very far from being in a “prime” position for savvy investors.
"This stock is in a vulnerable technical position," he recently told CNBC.
Ross explained the stock has shown "classic signs of exhaustion," and is now "sitting on key support at $950 in the short term — below which could test that 200-day [moving average] down around the big round number at $900."
Since peaking at $1,083.31 on the morning ahead of an earnings report that proved to be disappointing, Amazon (AMZN) shares have tumbled about 12 percent through Thursday’s recent quote of $943.61.
Even worse, the technical analyst said the stock's action is "very un-FANG like," referring to the much-discussed group of surging tech stocks Facebook, Amazon, Netflix and Google parent Alphabet.
"In three of the last five years, the stock has had 30 percent pullbacks. That's not the base case here, but with the stock just 10 percent off an all-time high going into the worst month for stocks historically, I would not be a buyer," Ross said. "I would be a buyer lower — down around $900, $870."
Ross isn't alone in warning about the future of Amazon's stock price.
"Amazon has turned from leader to laggard in the tech space," InvestorPlace's Tyler Craig observed.
"The character of Amazon stock has changed. And that warrants caution from even the most ardent fans. Sellers have seized control, and the technical damage is beginning to pile up," he recently warned.
To be sure, CNBC's Jim Cramer agrees, pointing to this week's news that Wal-Mart Stores Inc. is teaming up with Google to let shoppers order by voice, the latest example of the world's largest retailer finding a technology partner to catch e-commerce leader Amazon.com.
"Wal-Mart's not going to be outdone with its Google partnership. They have too much money riding on this fight and the company keeps assuring me that we ain't seen nothing yet out of theses partnerships. I like this battle royal. Plus, Google may know even more about you than Amazon does," Cramer said on "Mad Money."
"Combine Google and Walmart, and for the first time — maybe the first time in a long time, maybe the first time ever — it feels like Amazon could have a real rival, someone to fear and loathe on the Alexa trail."
(Newsmax wire services and Reuters and Bloomberg contributed to this report).
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