Chart of Day: Amazon (AMZN)
With the holidays just weeks away, keep an eye on Amazon (AMZN).
For one, after gapping from about $215 to $200, the stock appears to have caught strong support again and could easily refill its gap immediate term.
Two, in most years, Amazon is a no-brainer stock to buy and hold for the holiday rush. In fact, with the exception of 2022, the ecommerce giant has historically pushed higher heading into the holidays, which we expect to happen again this year.
Three, analysts at JPMorgan just reiterated an overweight rating on the AMZN stock, noting that it’s a “best idea heading into the holidays.” They also noted, “Amazon maintains a leading ~45% share of US e-comm & enters the holiday season with strong momentum from early holiday promotions, SD1D delivery [same day one day], regionalization, expansion of the Prime ecosystem, & competitive prices (see the pricing study below). AMZN remains our Best Idea.”
Analysts at Needham also just reiterated a buy rating on AMZN with a $250 price target. The firm noted, “AMZN’s focus is on customer-centric innovation, and most of its product development comes directly from customer feedback. AMZN’s culture allows every FTE (full-time equivalent) to pitch ideas and see them work-shopped, implemented and scaled quickly.”
In addition, according to eMarketer, U.S. holiday sales are expected to accelerate. “Total US retail sales for November and December 2024 will increase by a healthy 4.8% YoY to reach $1.353 trillion, with e-commerce growing at nearly twice that rate.”
And, according to Forrester, “U.S. Online Holiday Retail Forecast 2024,” total holiday retail sales in the U.S. will grow 3.7% year-over-year and reach $1 trillion in 2024, up from $964 billion during the 2023 holiday season, as noted by ChainStoreAge.com.
Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies