Sign InAmazon stock shows slight decrease and positive trend, pay-by-palm technology innovation drives potential growth
Summary
As of July 20, 2023, Amazon's stock price decreased by 3.99%, with a closing price of $129.96, and it is recommended to hold the stock considering the positive trend, but investors should also consider the high valuation and upcoming earnings release.
1. Stock Overview
Amazon.com Inc. (AMZN) is a corporation listed on the NASDAQ. As of the end of trading on July 20, 2023, Amazon had a closing price of $129.96. This represented a decrease of $5.40 or -3.99%.
2. Stock Price and Volume
AMZN has seen price fluctuations ranging from a low of $129.33 to a high of $134.79 on this trading day. Within the past year, Amazon's share price has fluctuated between a low of $81.43 and a high of $146.57. This represents a substantial range.
On the recent trading day, Amazon's volume reached approximately 58.24 million shares, which is slightly lower than its average trading volume of 62.90 million shares.
3. Market Position
Amazon's market capitalization is $1.33 trillion, indicating that it is a large-cap company with substantial market size.
4. Technical Indicators
The AMZN's Relative Strength Index (RSI14) is 54. This suggests a neutral level of technical momentum as a score above 70 would indicate overbought conditions, and a score below 30 would indicate oversold conditions.
Amazon’s 50-day moving average is $123.48, and its 200-day moving average is $104.91. The fact that Amazon’s current price ($129.96) is above both of these averages suggests an overall uptrend.
The MACD (Moving Average Convergence Divergence) is another important technical indicator. In Amazon's case, it has a 3-month MACD of 1.97, suggesting a bullish trend.
5. Valuation and Earnings
Amazon has an Earnings Per Share (EPS) of $0.41. The company's price-to-earnings ratio is notably high, standing at 316.98. This suggests that market participants have high growth expectations from AMZN relative to its current earnings.
Analysts have set a high target of $270 and a low target of $97.78 on the stock. The consensus target and median target stand at $161.55 and $159.5, respectively.
AMZN's next earnings announcements is set to be on July 26, 2023.
6. Recent Developments
Amazon has been in the news due to its pay-by-palm technology innovation. The corporation is planning to implement this technology in all US Whole Foods stores by 2024, suggesting a focus on enhancing the customer shopping experience by boosting convenience and facilitating seamless payment processes.
7. Prediction and Evaluation
Given the data provided, Amazon's stock price may be expected to move within the analyzed range over the next trading day. With respect to the upcoming week, market expectations (based on the consensus price target) assess the potential for a marginal increase.
However, it is important to consider possible market reactions to Amazon’s upcoming earnings announcement. It's possible that strong results might boost the stock, while disappointing results could lead to a decline.
Additionally, the pay-by-palm technology could potentially drive the company’s revenue growth and, in turn, have a positive impact on the stock.
8. Final Verdict
Considering all recommendations based on the presented data and parameters, Amazon's stock is regarded as a Hold at the moment. The current market price is above the short-term moving average indicators, signifying a positive trend. However, investors should also consider the high valuation and upcoming earnings release.
Please note, this outlook is subject to change with new and more information about the company's performance and market dynamics.
