The e-commerce giant reported quarterly results after last night's close
Amazon.com Inc (NASDAQ:AMZN) stock is down 3.7% at $230.04 at last check after the company issued weaker-than-expected guidance for the current quarter. The e-commerce giant forecasts first-quarter sales between $151 billion and $155.5 billion, falling short of analysts’ $158.5 billion projection.
Despite the cautious outlook, Amazon’s fourth-quarter earnings and revenue exceeded expectations. The mixed report prompted a flurry of analyst activity, with at least 10 firms raising their price targets, while four lowered their projections. Rosenblatt and Deutsche Bank were among the most optimistic, setting targets at $287, while Wells Fargo took a more conservative stance, cutting its target to $207.
Options traders have jumped into the action, with more than 655,000 calls and 338,000 puts exchanged -- five times the intraday average volume. Positions are being opened at the most active contract, which is the weekly 2/7 235-strike call, with contracts expiring at the end of today’s session.
Despite today’s pullback, AMZN remains just below its Feb. 4 all-time high of $242.52. The security is finding support at its 20-day moving average and the $230 level, helping it hold onto a 5.2% year-to-date gain. Over the past year, Amazon stock has climbed an impressive 36%.