Q2 STOCKS TO BUY

Amazon.com Stock Takes Breather After Prime Day Postponement

AMZN has almost doubled off its early-March lows

Digital Content Manager
Jul 21, 2020 at 10:00 AM
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The shares of Amazon.com, Inc. (NASDAQ:AMZN) are down 1.1% at 3,160.30 at last check, after the company said it will once again postpone Prime Day -- its high-profile online shopping event -- until early October. Amazon had previously rescheduled the event to September, but it is working on returning logistics operations to normal after an increase in online orders during the coronavirus pandemic. Regardless, Amazon earned a price target hike from Evercore this morning to $3,250 from $2,450. 

On the charts, Amazon stock has nearly doubled off its late-March lows near the $1,626 level. Since then, shares have pullbacks contained by consistent support from the equity's 20-day moving average. The security's latest all-time-high came in at $3,344.29 on July 13, but shares have since cooled off and found overhead pressure at the $3,200 mark. Nonetheless, AMZN is up 73% this year.

It's no surprise then that analysts were majorly optimistic toward the equity coming into today. Of the 33 in coverage, 32 sport a "buy" or better, with zero "sells" on the books. However, the stock's consensus 12-month price target of $2,980.85 is a 6.8% discount to current levels, suggesting there could be more price-target hikes on the way.

That sentiment is echoed in the options pits, where the appetite for calls is high. AMZN sports a 10-day call/put volume ratio of 1.62 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 94% of readings from the last year, suggesting a much healthier appetite for calls than what is typically seen. 

 
 

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