Amazon.com, Inc. (NASDAQ: AMZN) shares fell on Tuesday January 31 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, The Dow Jones Industrial Average DJIA, -0.60% fell 140 points, or 0.7%, to 19,833, with 26 of the 30 blue-chip companies trading lower. Nike, Inc. NKE, -1.10% down 2.4% and Intel Corp. INTC, -1.70% off 1%, were leading losses.
The S&P 500 SPX, -0.33% was off by 10 points, or 0.5%, to 2,270 with seven of the 11 main sectors trading lower. Industrials, consumer-discretionary, and technology shares were the worst performers, while real estate and utilities stocks attracted buyers.
The health-care sector, which was down in early trade, rebounded after President Trump called for scaling back drugmaker’s regulation, lowering taxes and prices of medicines.
The Nasdaq Composite COMP, -0.25% declined 31 points, or 0.6%, to 5,581.
Analysts at RBC Capital Markets reiterated an Outperform rating on shares of Amazon.com, Inc. (NASDAQ: AMZN) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. RBC Capital Markets currently has a rating of Outperform on the shares. The one-year price target of $929.10 is higher than the opening price of $823.75, causing a fair amount of other analysts to report on the company recently. Looking back over the last 52 weeks, Amazon.com, Inc. stock has a high of $847.21. Usually, after analysts publish a “reiterated rating” report on a stock, they will subsequently issue periodic updates, usually followed by a price target change.
Shares of Amazon.com, Inc. (NASDAQ: AMZN) opened at $823.75 yesterday and traded in a range between, $822.00 and $826.99, and last traded at $824.63, a decrease of $5.75 over the previous closing price.
Amazon.com, Inc. (NASDAQ: AMZN) now has a market cap of 391.84B.
Amazon.com, Inc. (NASDAQ: AMZN) Average Daily Trading Volume
507,866 shares traded hands yesterday, 122 percent below the norm, out of a total float 393,832,000. 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.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts researching thousands of stocks. So 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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Amazon.com, Inc. (NASDAQ: AMZN) have ranged from $474.00 – 847.21, and the stock now has a 50-day MA of $789.15 and 200-day MA of $781.23. Today’s last price is 2.67%% under the 52 week high of $847.21.
Earnings growth is a critical factor to consider when investing in stocks and investors seek companies that have grown their earnings by at least 25% over the past 3 years.
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