Amazon Stock Falls Despite New Business Ventures

Amazon.com is selling its cashier-less technology

Assistant Editor
Mar 9, 2020 at 10:38 AM
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Amazon Inc. (NASDAQ:AMZN) is down 7.1% to trade at $1,767.03, despite a positive premarket outlook this morning. The premarket rise came after news that AMZN will announce a new business line selling the technology behind its automated checkout to other retailers. Amazon's cashier-less venture, Amazon Go, is estimated by Loup Ventures to grow to $50 billion. Despite this seemingly positive development, AMZN has fallen victim to another "fear wave" today as COVID-19 spreads.

Since a recent surge and record high of $2,185.95 in the middle of February, Amazon stock has seen a small bear gap coincide with the broad market sell-off. The shares have breached their 200-day moving average today,  bullishly, a trendline of support that was in place since late December. Now, AMZN has also given back its year-to-date breakeven point.

Analysts are almost entirely bullish, with 30 out of 34 sporting a strong buy and three more considering a buy. And despite the "panic selling" plaguing the market, short interest has fallen 2.94% in the two most recent reporting periods and represents a small 0.86% of the equity's available float.

In the options pits, calls are favored. AMZN stock has a 10-day call/put ratio of 1.39 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 67% of readings from this past year. 

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