Amazon.com Announces 100,000 New Hires, Stock Surges

Analysts are extremely bullish on the e-commerce giant

Assistant Editor
Mar 17, 2020 at 10:27 AM
facebook twitter linkedin


After it was announced that it would hire 100,00 new workers and give raises to current employees, shares of Amazon Inc (NASDAQ:AMZN) are up 3.1%, last seen trading at $1,741.22. The pre-market rise came despite news yesterday that Prime members should expect “out-of-stock” household items and delays for what would typically be one-day deliveries as the company tries to get a handle on the influx of new orders coming in due increased fears of quarantines amid the coronavirus pandemic.

Amazon stock experienced a record high $2,185.95 on Feb. 11, but since the, the e-commerce specialist has seen a gradual decline aided by a series of bear gaps along the way. AMZN is now facing off with its 10-day moving average, a trendline that’s served as both support and resistance in the last 12 months.

To say analysts are bullish on Amazon stock would be a massive understatement. Of the 34 reporting analysts, a whopping 33 sport a “buy” position or better. Just one analyst recommends a “hold” position. Additionally, the consensus 12-month price target of $2,400.96 currently sits at a healthy 42.14% premium to current levels.

Calls rule the roost in the options pits. AMZN sports a 50-day call/put volume ratio of 1.49 at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 86% of all other readings from the past year, implying a much bigger appetite for calls of late. 


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners