MarthaStokesCMT-TechniTrader

AMZN Under Pressure to Offer a Dividend

BATS:AMZN   Amazon.com
Inventory adjustments are underway for $NASDAQ:AMZN. These adjustments are minor as Dark Pools are holding AMZN long-term, but there are other opportunities to boost ROI in younger companies.

AMZN needs to provide a dividend now that it is a Dow 30 stock. The mild rotation is a gentle reminder to the Board of Directors from their most critical and important investors, the Giant Buy Side Institutions. AMZN is the only fortune 500 company on the S&P500 that doesn't provide a dividend YET. The company's CEO is seasoned and aware that the Board must soon offer dividends, as it is no longer merely a "growth" company.

The pressure is increasing to force a dividend by the Giant investors. This should happen this year. There are no buybacks going on right now either. So the lowering of inventory is a warning to get this done. The Buy Side has the clout to influence the Board's decisions. This would benefit all investors big and small.

The support is at the lows of the red box on the chart, as indicated by the gap down white candle that quickly ended the previous selling by smaller funds.

WHEN, not if, AMZN announces a dividend, there is likely to be some brief momentum activity to the upside.

Martha Stokes, CMT
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