Late last year, I had a very bearish opinion of what we could expect to see moving forward from Amazon. However, after major changes to the company throughout the year, my opinion has changed dramatically. Now, I'm expecting the company to continue growing at an exponential rate. Today, we'll talk about why my opinion was so bearish last year, what changed to make me side with the bulls and how binary options traders can take advantage of the trends. So, let's get right to it…

Why I Wasn't A Fan Of Amazon Late Last Year

For several years, Amazon's stock was climbing while earnings stayed in the negative. After the Q3 earnings report last year, investor sentiment started to decline dramatically and so too did the stock. It seemed as though investors had enough of waiting on a company to produce solid gains after years of negative earnings. At this point, I started to give up on the stock as well. After all, investors are ultimately investing for growth, and staying in the negative for several years is anything but what investors want to see. So, it made sense that the stock would decline dramatically moving forward, at least, until positive earnings started to be produced.

What Changed This Year?

Throughout the year 2015, we've seen incredibly positive news from Amazon. First and foremost, investor sentiment improved greatly in February as the company released an earnings report that finally had positive earnings per share. As a result, the stock skyrocketed. While this started to change my mind, it wasn't the only factor that led to a bullish opinion of Amazon. Here are the key deciding factors for me…

  • Amazon Web Services – Amazon Web Services is a relatively new cloud service offered by Amazon. Early on, Amazon announced that the service had quickly grown to be a $5 billion business in and of itself. Throughout the year, we've seen incredible growth in AWS, lending a hand to the incredibly bullish opinion I have of the stock.

  • Amazon Prime – For quite a long time, I couldn't see how Amazon Prime would lead to any profit. After all, for only $99 per year, consumers get free two day shipping on most purchases, streaming video and more. However, I've spent quite a bit of time analyzing Prime this year. An important factor to consider here is that while the company may lose on the $99 per year, the vast majority of prime members spend quite a bit of money with the online retailer. In fact, it's estimated that more than 60% of fourth year Prime members spend $800 or more with Amazon every year. Considering the tens of millions of members out there, this equates to quite a bit of money!

  • Amazon's Financial Growth – Throughout the year 2015, Amazon's growth with regard to financial data has been incredible. While the company is still working with incredibly small margins, they have positioned themselves in a great way when it comes to finances. This has led to positive earnings in 3 of the last 4 quarters.

As a result of the factors above, I believe that Amazon is likely to continue heading toward the top!

How Binary Options Traders Can Take Advantage Of The Trends

Knowing that Amazon is likely to continue climbing, binary options traders have an incredible opportunity here. Essentially, traders should watch for strong call option opportunities in order to ride the trends up to the profits. Make sure to check our latest business news.

What Do You Think?

Where do you think Amazon is headed and why? Let us know your opinion in the comments below!

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