Amazon Slips After U.K. Regulator Threatens Deliveroo Investment

Amazon has added 29% so far in 2019

Managing Editor
Jul 5, 2019 at 10:10 AM
facebook twitter linkedin


Shares of online powerhouse Amazon.com, Inc. (NASDAQ:AMZN) are down 0.5% at $1,928.63. Pressuring the stock is news a British competition regulator sent an initial enforcement order to Amazon, requiring it to pause its minority investment in U.K.-based mobile delivery service Deliveroo on concerns the two companies have "ceased to be distinct." In a statement, Amazon said the investment would "enable Deliveroo to expand its services, benefiting consumers through increased choice and creating new jobs as more restaurants gain access to the service."

Today's pullback is only a minor dent in the FAANG stock's long-term uptrend. Specifically, Amazon stock has added 29% year-to-date, with its rising 10-day moving average containing its recent-but-brief bout of choppiness. A bounce off this trendline from earlier this week has AMZN within striking distance of its 2019 high of $1,964.40 from early May.

While they have yet to react to today's news, analysts have not been shy about their optimism surrounding AMZN. An overwhelming 27 of 28 covering firms sport a "buy" or "strong buy" rating on the stock, with not a single "sell" on the books. Plus, the equity's average 12-month price target of $2,246.89 comes in 16.5% above current levels. 

Amazon options are looking to be attractively priced, too. This is per the stock's Schaeffer's Volatility Index (SVI) of 17%, which stands in the 1st percentile of its annual range, suggesting short-term options are pricing in relatively low volatility expectations at the moment.

 

  

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners