Price-Target Hike, Microsoft Threat Puts Amazon Stock in Focus

Microsoft is reportedly working on tech similar to Amazon Go

Jun 14, 2018 at 9:45 AM
facebook X logo linkedin


Amazon.com, Inc. (NASDAQ:AMZN) is trading 0.3% higher today at $1,710, after brokerage firm D.A. Robinson raised its price target to $2,100 from $1,900. AMZN shares would need to rally about 23% to reach this level, which is well above the Wall Street average. By the numbers, the average analyst price target for the e-commerce giant is $1,837.65. The stock reached an all-time high of $1714.50 just last week.

Taking at peak at recent AMZN options activity, sentiment has been bullish. The equity's 10-day call/put volume ratio of 1.27 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows strong demand for long calls, especially since this reading ranks in the 82nd annual percentile. Overall, open interest for Amazon stands just 3 percentage points from a 12-month high.

Options data also suggests the FAANG stock could be a promising target for premium buyers. For one, its Schaeffer's Volatility Index (SVI) is 20%, putting it in the 12th annual percentile, hinting at lower-than-usual volatility expectations for near-term contracts. And with a Schaeffer's Volatility Scorecard (SVS) of 94, AMZN has already shown a strong tendency to blow past volatility expectations in the past year.

But back on the fundamental front, the company will now have to potentially deal with competition to its Amazon Go business -- or at least for the technology behind the model. Reuters is reporting that Microsoft (MSFT) is working on technology that would eliminate the need for checkout lines at stores. MSFT is trading up 0.4% at $101.20 in early trading.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI