Another Analyst Pins Trillion-Dollar Hopes on Amazon

AMZN shares are pulling back, despite a pair of price-target hikes

Managing Editor
Jan 10, 2018 at 10:20 AM
facebook twitter linkedin, Inc. (NASDAQ:AMZN) is back in the headlines after receiving a price-target increase to $1,385 from $1,375 at J.P. Morgan Securities. In a note to clients, the brokerage firm cited expectations for margin growth in 2018, and high hopes for the company's web services unit. Echoing a similarly upbeat note from Morgan Stanley last November, J.P. Morgan said AMZN has the potential to be a $1 trillion company.

Separately, the FAANG stock on Tuesday landed a price-target hike to $1,400 from $1,200 at Piper Jaffray, which -- like J.P. Morgan -- backed its "overweight" rating on the shares. Of the 37 brokerage firms following AMZN, no fewer than 34 call the stock a "buy" or "strong buy."

Despite today's pair of bullish analyst notes, Amazon stock has been trading lower all morning, following suit with a broader downside bias. At last check, AMZN was off 0.6% at $1,245.21 -- but on a year-to-date basis, the equity has already rallied about 6.5%, and just yesterday, the shares set a fresh record high of $1,259.33.

And while contrarians may be concerned that AMZN is trading lower today despite some upbeat analyst attention, it's worth noting that -- in addition to the broad-based concerns impacting today's market action -- the stock itself may have been due for a breather anyway.

Specifically, AMZN notched six straight days of gains through Tuesday's close, marking its longest daily win streak in about eight months. As a result, its 14-day Relative Strength Index (RSI) stood at 75 as of last night, indicating a short-term overbought condition that may need to be worked off before the next leg higher begins.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners