Q2 STOCKS TO BUY

Analysts Talk Amazon, Roku Stocks

An analyst is liking Roku's recent partnership with Adobe

Apr 1, 2019 at 10:33 AM
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At least two brokerage firms discussed Amazon.com, Inc. (NASDAQ:AMZN) in notes this morning. Credit Suisse mentioned the FAANG stock in its write-up on FedEx (FDX), saying the latter can increase profits and market share as it competes with Amazon in delivery. At the same time, the analysts also predicted that the U.S. parcels market will double in the next five years, so it sounds as though there will still be plenty of room for growth for Amazon, too.

Meanwhile, Oppenheimer is growing more bullish on AMZN's cloud business, saying Amazon Web Services (AWS) can harness artificial intelligence in a unique way as more businesses move to the cloud. The analyst raised their price target on the stock to $2,085 from $1,975. This represents record-high territory for the shares, which were last seen trading up 1.5% at $1,806.93, starting off the second quarter hot once again.

Roku Inc (NASDAQ:ROKU) saw its price target hiked to $76 from $63 at KeyBanc, and the analyst note discussed internal data that showed users are purchasing more content on the platform, while the analyst also wrote positively about the company's recent partnership with Adobe Systems (ADBE). In response, ROKU shares are trading 2.9% higher at $66.37.

Looking closer at the charts, the security has momentarily moved past recent resistance from the 20-day moving average, and the rising 40-day moving average could also be a bullish indicator. Specifically, Schaeffer's Senior Quantitative Analyst Rocky White ran a study showing Roku recently moved within one standard deviation of the trendline after a lengthy period trading above it, and three similar pullbacks of this type have resulted in an average one-month gain of 8.34% in recent years. Such a move this time would put ROKU back near where it was trading before a rare "sell" rating sent the shares gapping lower in mid-March.

 

 

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