Bull Notes Pour In for Amazon Stock After Blowout Earnings

AMZN hit a new record high and is eyeing its sixth-straight win

Digital Content Manager
Apr 30, 2021 at 10:28 AM
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The shares of e-commerce concern Amazon.com, Inc. (NASDAQ:AMZN) are up 2.2% at $3,548.03 at last check, and earlier hit a record high of $3,554. The tech name is the talk of the investing world this morning, after reporting better-than-expected first-quarter earnings and revenue beat. This also marks the company's fourth consecutive quarterly win, and best-ever profit as consumers shifted to online shopping during the pandemic, and businesses paid more to store and advertise their products with the platform.

Today's positive price action has the equity on track for its sixth-straight win. The brokerage bunch is reacting to the news with optimism. The security received no fewer than 20 price-target hikes, including a lofty one from Susquehanna to $5,500 from $5,200.

That's even more notable considering analysts were already overwhelmingly bullish towards AMZN, with all 34 in coverage calling it a "buy" or better. Plus, the 12-month consensus price of $4,066.72 is a 14.8% premium to current levels.

The options pits are firmly in the bullish camp. This is per the equity's 10-day call/put volume ratio of 2.17 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all readings from the past 12 months.

Drilling down to today's options activity, 100,000 calls and 66,000 puts have crossed the tape so far, which is volume that's three times the average intraday amount. The weekly and expiring 4/30 3,600-strike call is by far the most popular, followed by the 3,550-strike call in the same series, with new positions being opened at the latter. Buyers of these options expect more upside for AMZN by the end of the session.

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