Why The Alibaba IPO Was Great For Amazon

Sean Udall is a monthly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Quantum Trading Strategies CIO Sean Udall commented on Amazon.com, Inc. (NASDAQ: AMZN).

Udall felt that the IPO of Alibaba Group Holding Ltd (NYSE: BABA) was one of the best things to happen to Amazon as Alibaba’s high valuation helped push up Amazon’s stock price.

Udall was expecting a “relatively good” quarter for Amazon when it reported Thursday.

While Udall was uncertain about how much upside there was in the stock at the moment, he made it clear that he would not short Amazon.

Alibaba recently traded at $82.82, up 0.66 percent in Friday's premarket.

Amazon traded at $438.76, up 12 percent following its earnings report.

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