Amazon.com, Inc. (NASDAQ:AMZN) and Netflix, Inc. (NASDAQ:NFLX) are some of the most talked about stock in the market according Jim Crammer on ‘Mad Money’ on CNBC. While Amazon.com, Inc. (NASDAQ:AMZN) Prospects continue to look brighter in the market, Netflix, Inc. (NASDAQ:NFLX) continues to remain risky as its stock could swing either way on the upside or the downside. Amazon had an impressive rally in May and early June but later slowed and got stuck on a very tight channel of between $324 and $340. Amazon has since, in recent trading session’s rallied, picking up $30 in a matter of three days according to daily charts.
Cramer believes Amazon.com, Inc. (NASDAQ:AMZN) has broken the tight trading channel that it was earlier stuck in and also the resistance level that was keeping it down in the month of April. Tim Collins according to Cramer has recommended the stock as a buy as it commands a huge upside going forward.
“With this rally, the stock has broken out of the tight-trading channel it was stuck in, it also means it has broken above the same resistance level that was keeping it down back in April,” said Mr. Crammer.
The next series of resistance for Amazon.com, Inc. (NASDAQ:AMZN) according to Cramer will be at the $380 mark meaning that the company at the moment commands a huge potential on the upside than the downside.
Netflix, Inc. (NASDAQ:NFLX) , on the other hand, according to Cramer has a ‘head and shoulder’ pattern of which if it slides below the $430, it will complete the head and shoulder pattern to lows of $385. As long as Netflix does not slump below the $430 mark, the stock could climb higher. Cramer has also reiterated the fact that Netflix is currently trading at the ‘no-man’s land’ such that if it starts climbing, it could higher than expected, and if it starts dropping it could fall miserably.
“Right now it could go either way but according to Collins if it goes down, it would go down a lot and if it goes up, it would go up a lot. That’s a good reason to sit on the sides and wait for more information” said Mr. Cramer.
Netflix, Inc. (NASDAQ:NFLX) remains a more risky investment from the tech perspective considering it could swing anywhere depending on how it starts to move.
Disclosure: none
