Amazon.com, Inc. (NASDAQ: AMZN) shares rose in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at Vetr Inc. downgraded shares of Amazon.com, Inc. (NASDAQ: AMZN) from Buy to Hold in a research note to investors today. Vetr Inc. currently has a rating of Hold on the stock. The one-year price target of $928.53 is above the opening price of $798.00, causing a number of other analysts to report on the stock recently. Looking back over the last 52 weeks, Amazon.com, Inc. stock has a high of $847.21. Downgrades occur when analysts consider that the future prospects for the security have diminished from the original recommendation, usually due to a material and integral change in the company’s operations, future outlook or industry.
Shares of Amazon.com, Inc. (NASDAQ: AMZN) opened at $798.00 yesterday and traded in a range between, $796.38 and $801.77, and last traded at $796.91, which represents an increase of $0.92 compared to the previous closing price.
Amazon.com, Inc. (NASDAQ: AMZN) now has a market cap of 378.67B.
Amazon.com, Inc. (NASDAQ: AMZN) Average Daily Trading Volume
805,974 shares crossed the trading desk yesterday, 78 percent lower than normal, out of a total float 393,832,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are researching.
Amazon.com, Inc. (NASDAQ: AMZN) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Amazon.com, Inc. (NASDAQ: AMZN) now has a 50-day MA of $766.15 and 200-day MA of $770.70. It has traded in a 52-week range between $474.00 – 847.2100 and today’s last price is 5.94%% lower than the 52 week high of $847.21.
Earnings growth is a crucial factor to research when investing in stocks and investors seek companies that have been successful at growing their earnings by at least 25% for the past 3 years.
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