We’ve heard quite a bit about Amazon Web Services recently. After all, it is a profitable area for Amazon; a company that doesn’t seem to be able to produce consistent gains. Nonetheless, to improve upon their web services platform, Amazon recently purchased Elemental Technologies. Today, we’ll talk about the details of the acquisition, how the market reacted to the news, what we can expect to see moving forward, and how you can take advantage of the trends.
Details Of The Acquisition
The acquisition was announced on Friday. Essentially, Amazon will pay $500 million to combine Amazon Web Services with Elemental Technologies’ video solutions. This will give Amazon a better system for the distribution of video content across channels like TV, tablets, mobile, desktop and laptop. During the announcement, Amazon Web Services’ senior vice president, Andy Jassy had the following to say…
“Together, we’ll collaborate on deeper technology integrations and new infrastructure offerings so that media and entertainment companies can evolve their hybrid and cloud models as they continue to innovate their services for their viewer…”
How The Market Reacted To The News
Unfortunately for Amazon, the announcement came in bad timing. On Friday, the market declines continued; and Amazon wasn’t immune to the affects. While the Dow Jones Industrial Average, NASDAQ, and S&P 500 declined by more than 1%, Amazon wasn’t far behind. On Friday, the stock closed at $499 per share after a loss of 1.13%.
What We Can Expect To See Moving Forward
First and foremost, I think that it’s important to remember that markets are incredibly volatile at the moment. With uncertainty with regard to the Chinese economy, the global market has been in a bit of a crash recently; that’s why Amazon fell on Friday. With that said, the acquisition is great news; and when US markets open back up on Tuesday, we can expect to see upward movement as investors react to Friday’s market activity. This is when I think we can expect to see great things out of Amazon’s stock. However, I also expect the climb to be short lived. After all, Amazon is a stock with an astronomical price to earnings ratio; and under current market conditions, investors are working to balance their portfolios with less risk.
How Binary Options Traders Can Take Advantage Of The Trends
First off, Monday will most likely be a day of gains. With that said, on Monday, binary options traders should look for support in the market that’s likely to lead to gains; buying call options at these points. However, after Monday, it’s all up in the air. With heavy market turmoil at the moment, it will be important to react as movements happen. Just remember to draw your support and resistance lines; buying calls at support and puts at resistance. By doing so, you’ll be able to take advantage of just about any trend that happens in the market!
What Do You Think?
Where do you think Amazon is headed and why? Let us know in the comments below!