Amazon stock: buy or sell
Updated on:
Jan 25th, 2021
2
Amazon stock brief
- Amazon stock barely changed -0.45% to close at $3,292.23 on the stock market last Friday, and broke a streak of 3 sessions in green.
- Amazon is presenting its earnings report on Thursday
- Credit Suisse Group published a buy rating for Amazon last Friday, targeting $3,860.00
- Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally.
Should I buy Amazon stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $AMZN stock a buy?
Currently, Amazon stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $AMZN in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Amazon stock?
Do you know when is it time to sell Amazon stock?. Trading strategies help us to avoid rash decisions based on our personal feelings or the noise that surrounds the market. When selling, as well as buying, our setups are very simple to use and are only applicable for selling shares in your porfolio, not for shorting Amazon stock
A guiding principle is that you must never mantain an investment that yields higher than expected losses upon purchase. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell Amazon stock?
Currently, Amazon stock doesn't match any of our preferred sell setups, so if you own Amazon stock and your operation is in profit probably is not time to sell now
Amazon ratings
In the last month, 4 brokerage ratings were published for Amazon. General sentiment is bullish, with 3 out of 4 publishing positive forecasts
| Brokerage firm | Rating |
|---|---|
| Jan 15th, 2021 | |
| Morgan Stanley | Buy |
| Jan 21st, 2021 | |
| Bank of America | Neutral |
| Jefferies Financial Group | |
| Jan 22nd, 2021 | |
| Credit Suisse Group | Buy |
Amazon stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
The price is moving very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks
Relative strength index
The has been between the levels of 70 and 30 for several weeks, and therefore, without this indicator really helping us to make any decisions.
Amazon stock price history
Amazon went public on May 15th, 1997 at $2.44 per share1. Since then, AMZN stock surged by 134,827.46%, with an average of 5,862.06% per year. If you had invested thousand dollars in Amazon stock on May 1997, it would have a value of $1,349,274.59 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Amazon stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis forecasting how a particular stock will performance in the future.
The following table shows the price predictions posted by brokerage institutions in the last month. If you are a small investor you shouldn't trade based on these predictions.
The average price target for Amazon stock calculated from the table below is $3,920.00. Amazon closed at $3,292.23 last Friday, that is a 16.01% than the predicted price.
| Brokerage firm | Price target |
|---|---|
| Jan 15th, 2021 | |
| Morgan Stanley | $3,750.00 → $3,900.00 |
| Jan 21st, 2021 | |
| Bank of America | $3,650.00 → $4,000.00 |
| Jefferies Financial Group | Not available |
| Jan 22nd, 2021 | |
| Credit Suisse Group | $3,750.00 → $3,860.00 |
Earnings and financials
Amazon ($AMZN) is releasing quarterly earnings report on Thursday. Wall Street analysts forecast of $7.17, that is a 42.04% less than Q3.
Stocks presenting earnings usually experience a much higher volatility in price during after-hours trading and the session after. This volatility may imply that your stop-loss orders may become ineffective or may trigger far from your aimed price. You can probably obtain more information about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.amazon.com.
Last October, Amazon.com, Inc. ($AMZN) reported EPS for that highly enhanced analysts' expectations. Quarterly EPS was $12.37 per share from an estimated $7.41. This Q3 report represents an earnings surprise of 66.94%. Predicted turnover was $92.7 billion but Amazon slightly surpassed by 3.72%, reporting $96.1 billion.
Compared to the same quarter one year ago, EPS was $4.23, so current EPS is a improvement of 192.43%. Revenue skyrocketed a 37.39% on an annualized basis in the , from $699.8B to $961.5B last quarter.Amazon competitors
Amazon belongs to the Consumer Cyclical sector and the Internet Retail industry, where it has industry peers.
The following are some of Amazon most relevant competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Amazon ($AMZN) | $1.6T | Buy | 3 |
| Microsoft ($MSFT) | $1.6T | | 1 |
| Google ($GOOGL) | $1.2T | Buy | 3 |
| Walmart ($WMT) | $414.9B | | 1 |
| Costco Wholesale ($COST) | $161.2B | Buy | 1 |
| MercadoLibre ($MELI) | $96.8B | Buy | 1 |
| eBay ($EBAY) | $38.9B | Neutral | 0 |
| Overstock.com ($OSTK) | $2.3B | Neutral | 0 |
1 In the last 30 days.
Amazon performance
To better understand Amazon stock performance you must compare its gains with other related stocks in same sector or industry.. For Amazon, the benchmark is made against Microsoft, Google, Walmart, Costco Wholesale, MercadoLibre, eBay and Overstock.com.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Amazon ($AMZN) | 2.80% | 3.20% | 12.40% |
| Microsoft ($MSFT) | 1.50% | 5.90% | 13.30% |
| Google ($GOOGL) | 9.40% | 19.40% | 26.20% |
| Walmart ($WMT) | 0.80% | 1.90% | 12.60% |
| Costco Wholesale ($COST) | -0.50% | -1.30% | 14.40% |
| MercadoLibre ($MELI) | 14.70% | 51.90% | 103.00% |
| eBay ($EBAY) | 9.20% | 7.70% | 3.20% |
| Overstock.com ($OSTK) | 6.30% | -0.40% | 32.20% |
Please read:
The thoughts contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not know the individual conditions of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for general educational reasons onlyAmazon summary
| Friday, January 22nd, 2021 | |
|---|---|
| Open | $3304.31 |
| Close | $3292.23 |
| Day range | $3283.16 - $3321.91 |
| Previous close | $3306.99 |
| Session gain | -0.45% |
| Average true range | $93.92 |
| 50d mov avg | $3,169.95 |
| 100d mov avg | $3,184.84 |
| 200d mov avg | $2,963.36 |
| Earnings date | January 28th, 2021 |
Frequently asked questions
What is Amazon stock symbol?
Is Amazon stock a buy or sell?
Will AMZN go up?
Latest Amazon news
- CNN MoneyAmazon announces $15 minimum wage for all US employeesOct 2, 2018