Are we undervaluing Amazon's AI potential?
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Disclaimer: The levels discussed were taken from an AMZN chart on July 1, so price action may have shifted the chart.
E- commerce giant Amazon.com Inc (NASDAQ:AMZN) made a big move in the spring to reclaim its 2020-2021 range highs on the monthly candle. The market is potentially undervaluing what artificial intelligence (AI) can do for Amazon Web Service (AWS) revenue streams, and the benefits could provide a big boost for the stock when earnings roll around.
In the options pits, we're seeing deep in-the-money December 270 puts being sold and December 270 being bought in bulk, which means there are big players potentially positioning themselves for a year-end rally. Premium is affordably priced as well, with AMZN's Schaffer's Volatility Index (SVI) coming in at the 8th percentile of its annual range.