Amazon.com Inc. (AMZN) Stock Trending Up After Price Target Increase by Analysts at Morgan Stanley

Amazon.com Inc. (NASDAQ: AMZN) shares rose in yesterday on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.

Amazon.com Inc. (NASDAQ: AMZN) had its price target boosted by equities researchers at Morgan Stanley from $800.00 to $950.00. With a rating of Overweight on the shares, the company has a 52-week high of $845.67. The one-year price target of $894.71 is above the opening price of $838.01, resulting a number of other analysts to report on the stock recently.

Meanwhile, the Dow Jones Industrial Average DJIA, +0.62% finished up 112.58 points, or 0.6%, at 18,281.03 yesterday.

The Nasdaq Composite Index COMP, +0.50% rose 26.36 points, or 0.5%, to end at 5,316.02, and is up 0.1% for the week to date.

The S&P 500 index SPX, +0.43% added 9.24 points, or 0.4%, to close at 2,159.73.

Amazon.com Inc. (NASDAQ: AMZN) shares last traded at $844.36, an increase of $10.33 or 0.01 compared to the previous closing price. Opening at $838.01, they ranged from $836.12 and $845.67 throughout the day.

Amazon.com Inc. (NASDAQ: AMZN) currently has a market cap of 400.29B.

Amazon.com Inc.Trading Volume

The stock’s average daily volume is 2,919,840 shares out of a total float 392,736,000 and some 3,475,096 shares crossed the trading desk yesterday, higher than the norm. Large expansions in trading volume and price inflation together could signal heavy volume accumulation by institutional investors.

As with all potential breakouts, investors watch for volume to be at least 40%-50% above normal on the breakout to demonstrate 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 instituitional investors have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re considering.

Amazon.com Inc. 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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

Trades for Amazon.com Inc. (NASDAQ: AMZN) have ranged from $474.00 – 845.67, and the stock now has a 50-day MA of $785.29 and 200-day MA of $715.33. Today’s last price is 0.00% below the 52 week high of $845.67.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have grown their earnings at least 25% or more over the past 3 years.

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