Amazon Stock Falls Despite New Business Ventures

Amazon.com is selling its cashier-less technology

Assistant Editor
Mar 9, 2020 at 10:38 AM
facebook twitter linkedin


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. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners