Amazon.com, Inc. (NASDAQ: AMZN) shares rose on Friday January 13 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.
U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.
The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.
Amazon.com, Inc. (NASDAQ: AMZN) had its Buy rating reiterated by equities researchers at Jefferies Group in a research note to investors. With a rating of Buy on the shares, the company has a 52-week high of $847.21. The one-year price target of $927.34 is above the opening price of $814.32, causing a fair amount of other analysts to issue statements on the stock in recent days. Usually, after analysts give a “reiterated rating” report on a stock, they will later issue periodic revisions, such as a price target change.
Yesterday Amazon.com, Inc. (NASDAQ: AMZN) shares last traded at $817.14, a spike of $3.50 over the previous closing price. Opening at $814.32, they fluctuated from $811.40 and $821.65 throughout the day.
Amazon.com, Inc. (NASDAQ: AMZN) now has a market cap of 388.28B.
Amazon.com, Inc. (NASDAQ: AMZN) Average Daily Trading Volume
3,791,945 shares traded hands yesterday, 101 percent lower than the norm, out of a total float 393,832,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Amazon.com, Inc. (NASDAQ: AMZN) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
With that in mind, Amazon.com, Inc. (NASDAQ: AMZN) now has a 50-day MA of $766.15 and 200-day MA of $770.70. It has traded in a 52-week range between $474.00 – 847.21 and today’s last price is 3.55%% lower than the 52 week high of $847.21.
Earnings growth is an important factor to consider when buying stocks and investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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