For Amazon, It's Suddenly 'Buy,' 'Buy,' 'Buy'
As a bunch of analysts weigh in on the online giant, let's see what price is right for a target.
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I know that you're watching Amazon AMZN. Is the stock finally breaking out for CEO Andy Jassy? My answer would be a definite ... maybe.
My dollars say that I am long the shares. On Monday, two highly rated sell-side analysts opined on Amazon out of nowhere. Brian White of Monness, Crespi, Hardt & Co., reiterated his "buy" rating on Amazon along with his $225 target. White is rated five-stars by TipRanks, and I know to be a sharp analyst, though I have disagreed with him on Palantir Technologies PLTR in the past.
Elsewhere, Joe Feldman of Telsey Advisory, who is also rated five stars, reiterated his "buy" rating on the shares along with his target price of $215.
Going back to Friday, a third highly rated analyst, Ken Gawrelski of Wells Fargo, who's rated 4.5 stars, took over coverage of AMZN for his firm and reaffirmed the "buy" rating, while increasing the target price from $234 to $239. Gawrelski, at that time, named Amazon as his "signature pick." You may have seen other analysts stating their opinion, as well. Unless there is very little coverage of a name, I do not use analysts rated below four stars by TipRanks as part of my information input.
A Wall Street Chorus
Another five-star-rated analyst made himself heard now this morning: James Lee of Mizuho Securities rates Amazon at "outperform," which is "buy-equivalent," with a $240 target. Lee made news this morning, because Mizuho conducted a survey that showed an accelerated sales cycle for Amazon's cloud computing unit, AWS. The survey also showed that the shift in spending on the cloud has shifted toward infrastructure, which implies that the pipeline for workload upgrades to databases remains strong and perhaps suggests an increased move into AI. The survey also showed corporate projects related to generative artificial intelligence as being close to an inflection point, where external models could be a rough six months from being commercially deployed. This is also a likely plus for the likes of Microsoft MSFT and perhaps Alphabet GOOGL and Oracle ORCL.
The Charts Come Together
Readers will see that AMZN traded higher, while remaining inside an ascending triangle from very early 2023 through April 2024, when the stock went into a basing period of consolidation.
Readers can now see the flat base with a $192 pivot. The stock broke out from that pivot last week and has see-sawed above that spot, while holding the level. Using $192 as support is key to the success of this still "iffy" breakout.
Readers will also see a strong, but not technically overbought, reading for Relative Strength and a daily moving average convergence-divergence oscillator that has gone from meh to overtly bullish since mid-June. Now, we have the best of all short-term worlds with the 12-day exponential moving average above the 26-day EMA, while both of those averages continue to rise, while the histogram of the 9-day EMA stands firmly in positive territory.
Amazon Plan
Target Price: $230
Pivot: $192
Add: Down to $192, then again down to 50-day SMA ($184)
Panic: Loss of $174 base support.
At the time of publication, Guilfoyle was long AMZN, PLTR, WFC, MSFT equity.
