Amazon Stock Set to Snap Losing Streak on Pre-Earnings Bull Notes

The retailer also announced two new Ohio-based robotics fulfillment centers

Deputy Editor
Jul 22, 2019 at 10:52 AM
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Retail giant Amazon.com Inc (NASDAQ:AMZN) just unveiled its plans to build two new robotics fulfillment centers in Ohio, one in Akron and one in Rossford, which will create over 2,500 full-time jobs. The FAANG name is getting bullish analyst attention today, too, with a price-target lift from KeyBanc to $2,200 from $2,100. The analyst said trends in the retail sector have improved since the first quarter, and cited the company's recent Prime Day, which was its largest in history, hitting even bigger sales than Black Friday and Cyber Monday combined.

KeyBanc's new price target comes in just below AMZN's consensus 12-month price target of $2,250.32, which represents a level the stock has yet to traverse. However, Deutsche Bank upped the ante by raising its own price target on Amazon this morning to $2,515 from $2,315.

More broadly, the majority of analysts lean bullish, too. Currently, there are 27 "buy" or better ratings on the table, compared to only one "hold"  and zero "sells."

Amazon is trading slightly higher, up 0.1% at $1,966.59, and set to snap its four-day losing streak. Since hitting a 10-month high of $2,035.80 just two weeks ago -- nearly brushing its September intraday record of $2,050.50 -- the stock has cooled some, clocking its worst week since May last week. The equity was able to find its footing atop its 20-day moving average, however, and still boasts a 30.9% year-to-date gain. 

Despite this recent dip, options bulls have AMZN surrounded. Right now, the security sports a 10-day call/put volume ratio of 1.47 on the on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 97th percentile of its annual range, indicating a much healthier appetite than usual for calls over puts of late. 

This bullish barrage comes just days before Amazon unveils its second-quarter earnings report, with results expected after the close this Thursday, July 25. In the session immediately following its last eight earnings reports, the stock finished higher five times, averaging a 4.8% swing, regardless of direction. This time around the options market is pricing in a slightly bigger one-day move of 6.3%. 

 

 


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