Amazon.com, Inc. (NASDAQ: AMZN) shares rose in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Jefferies Group analysts reiterated its Buy rating on Amazon.com, Inc. (NASDAQ: AMZN) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the shares, Amazon.com, Inc. has a 52-week high of $847.21. A number of other analysts have commented on the stock in recent days, and Amazon.com, Inc. has secured a consensus one-year price target of $927.34, higher than the opening price of $800.31. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Yesterday Amazon.com, Inc. (NASDAQ: AMZN) shares last traded at $805.21, which represents a jump of $6.19 from the previous closing price. Opening at $800.31, they varied from $799.50 and $808.75 throughout the day.
Amazon.com, Inc. (NASDAQ: AMZN) now has a market cap of 382.61B.
Amazon.com, Inc. (NASDAQ: AMZN) Average Daily Trading Volume
The stock’s average daily volume is 4,234,250 shares out of a total float 393,832,000 and some 996,024 shares traded hands yesterday, 93 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
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 – 847.21 and today’s last price is 4.96%% lower than the 52 week high of $847.21.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings by at least 25% over a 3 year period.
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