AMAZON BULLISH AFTER MORGAN STANLEY UPGRADES PROFIT TARGETS
Amazon edged higher in the premarket trading session on Thursday. At one point during the premarket, Amazon was at $2,001 per share.
The closing price of Amazon on Wednesday was $1998.24- a gain of about 3.4% from Tuesday’s closing. The stock gained after Morgan Stanley raised its profit target on Amazon and also on optimism over trade talks between the United States and Canada.
Morgan Stanley increased Amazon’s price target to $2,500 per share from $1,850, representing 29% upside on Tuesday’s close. It is the highest target out of the 41 analysts who cover Amazon, according to FactSet.
Analysts said that “Amazon’s rapidly growing, high margin revenue streams (advertising, AWS, subscriptions) will drive higher profitability and continued upward estimate revisions,”
Amazon stocks have been on a tear this year, surging 70.9 percent through Wednesday’s close.
On the technical front, RSI is currently at 75.73% and suggests that the market can move in the upward direction. The %K has crossed the %D from below to the upside at 72.90 and suggests that the market may head upwards. The current price is above the MA5. Overall market sentiment seems to be positive.
TRADE SUGGESTION-STOP BUY AT 2000 TAKE PROFIT AT 2010 STOP LOSS AT 1995