A Broad Range of Results for Internet Retailers as Quarantine Results are Measured
The COVID-19 virus and the quarantine orders that occurred have had a tremendous impact on the internet retail sector. The sector includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services.
Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories.
One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry.
For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers.
In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.
What is really interesting is that if we look at how some of the most well-known names in the group have performed over the last few months, it has been the lowest rated stocks that have outperformed.
I looked at the entire group, but I focused on five stocks— Amazon (Nasdaq: AMZN), Alibaba (NYSE: BABA), Overstock.com (Nasdaq: OSTK), Shopify (NYSE: SHOP), and Wayfair (NYSE: W). What I found to be particularly interesting is how the stocks have performed over the past three months and how that correlated to the fundamental and technical analysis ratings for the stocks. As the market has rocketed higher after bottoming in March, there seems to be an inverse relationship to performance and quality.
The following screenshot is for the fundamental ratings of those five stocks. The order the stocks are arranged in is based on the returns from the last three months. It hasn't quite been three months since the March low, but it has been close. Notice the number of red stats you see for the top three—Overstock, Wayfair, and Shopify? Notice the number of red stats you see for the bottom two—Amazon and Alibaba?
The technical analysis screen is even more lopsided with the stocks arranged in the same order. There isn't a single red mark for Amazon and Alibaba and each of the other three stocks have at least two red marks. Wayfair and Shopify both have four negative marks on their technical analysis screens.
In order to be more specific, I looked at the price gains for these five stocks since the lows in the market on March 23. For comparison purposes, I also included the SPDR S&P 500 ETF (NYSE: SPY) and the Amplify Online Retail ETF (Nasdaq: IBUY). The chart shows how Wayfair and Overstock have seen meteoric jumps—gains of 466% and 376%. Shopify has gained 98% and the Amplify Online Retail ETF has gained 86%.
The Spyders have gained 44% and Amazon and Alibaba have underperformed the market with gains of 37% and 25%, respectively.
How can this be explained? The S&P 500 just went through its greatest 50-day rally in history and the internet retail ETF more than doubled the return of the index. Okay, that isn't a stretch since these companies should have benefitted from the increase in online shopping.
So how do you explain the stocks with the better fundamental ratings and technical ratings being outpaced by the stocks with lower ratings?
The rally off the March lows has been a full blown risk-on rally. Investors were looking to buy anything and everything that had sold off sharply and that included the likes of Wayfair and Overstock. Shopify held up rather well, as did Amazon and Alibaba.
Now that most of the indices have returned to the levels they were at when the year started and with many ETFs experiencing tremendous rallies over the last few months, I expect a return to quality. We have already seen a shift from growth to value and that has allowed poor performing sectors to catch up to the better performers for the first quarter. Now I expect investors to take profits on some of the high-flying names and seek out the higher quality names once again.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
AMZN's Stochastic Oscillator is staying in oversold zone for 5 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
AMZN moved above its 50-day moving average on July 31, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for AMZN crossed bullishly above the 50-day moving average on August 05, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +2 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 267 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on August 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on August 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AMZN as a result. In of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on August 17, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMZN broke above its upper Bollinger Band on July 31, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.058) is normal, around the industry mean (29.289). P/E Ratio (20.807) is within average values for comparable stocks, (44.171). Projected Growth (PEG Ratio) (1.377) is also within normal values, averaging (1.345). Dividend Yield (0.000) settles around the average of (0.079) among similar stocks. AMZN's P/S Ratio (3.625) is slightly higher than the industry average of (1.424).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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