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Amazon.com Sinks After Issuing Gloomy Cloud Forecast

Analysts dished out a slew of price-target updates

Deputy Editor
Apr 28, 2023 at 10:08 AM
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E-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) stepped into the earnings confessional after yesterday's close, reporting a first-quarter profit and revenue that beat analysts expectations. The shares are down 4.6% at $104.80 at last glance, however, after the company issued concerns regarding its cloud growth.

Analysts were quick to chime in with bullish expectations though, as no fewer than 13 upped their price target. Evercore ISI, meanwhile, cut its price objective to $150 from $155.  Coming into today, the 12-month average target price of $133.69 was a 21.7% premium to last night's close, and 38 of 39 covering brokerages rated AMZN a "buy" or better.

Drilling down today's options activity, 454,000 calls and 294,000 puts have exchanged hands, which is five times the intraday average. The weekly 4/28 110-strike call and 105-strike put are the two most popular contracts, respectively, both set to expire this afternoon.

Today's negative price action puts AMZN at a nearly 25% year-over-year deficit, though it remains up more than 29% in 2023. Amazon.com stock is still on track to secure its third-straight weekly win, as well as its second consecutive monthly gain. Also worth noting, overhead the equity has run into the 260-day moving average.

 

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