Amazon stock rose after it announced it would be cracking down on sellers attempting to price gouge during the pandemic.
While the global economy continues to reel and people fear the availability of certain everyday items in the wake of the coronavirus pandemic, Amazon Inc (NASDAQ:AMZN) announced it has removed over 3,900 accounts it has flagged for price gouging. Additionally, Amazon has removed more than half a million items due to COVID-19 price gouging issues which violate its fair pricing policy. Currently, shares of AMZN stock is up 2%, last seen trading at $1,941.48.
After coming off a record high in the beginning of February, Amazon stock fell to an annual low of $1,626 by early March. From a broader perspective, the FAANG giant is up 4% year-to-date.
Analysts are still extremely bullish on AMZN stock. Of the 34 covering firms, 33 rate it a “buy” or better. There are currently no recommendations to sell, as the leftover analyst sports a “hold” position. Additionally, the consensus 12-month price target of $2,414.22 is a 26.8% premium to current levels.
Calls continue to dominate the options pits for Amazon. The stock currently sports a 50-day call/put volume ratio of 1.47 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This suggest a bigger appetite for calls of late, as the ratio sits higher than 80% of all other readings from the last 12 months.