Jim Cramer called on his listeners to think of AMZN stock like you would an IPO after the stock popped 14% on February 4, 2022. Guerilla Stock Trading detected bullish option flow in Amazon on February 4, 2022.
Bullish Option Flow In AMZN Stock
Make sure to review this lesson on option flow so that you understand the image above.
📺💥 Jim Cramer’s game plan for the trading week of February 7 2022, Think of AMZN Like an IPO
Peloton attracts interest from suitors, including Amazon.com, WSJ reports
On February 4, 2022, Peloton (PTON) is attracting interest from potential suitors including Amazon.com (AMZN), The Wall Street Journal’s Cara Lombardo, Miriam Gottfried and Dana Cimilluca report, citing people familiar with the matter. Amazon has been speaking to advisers about a potential deal, some of the people said. There’s no guarantee it will follow through with an offer or that Peloton, which is working with its own advisers, would be receptive, the authors note. Source: https://www.wsj.com/articles/peloton-draws-interest-from-potential-suitors-including-amazon-11644012693
Amazon operating income likely to improve throughout 2022, says Jefferies
On February 4, 2022, after Amazon delivered better-than-expected operating income results and guidance, Jefferies analyst Brent Thill said operating income is likely to improve throughout 2022 on both a dollar and margin basis driven by greater efficiency as capital spending moderates and U.S. Prime fees increase. Q4 also represented the fourth consecutive acceleration in AWS sales growth, noted Thill, who keeps a Buy rating and $4,000 price target on Amazon shares.
Amazon.com price target raised to $4,100 from $4,000 at MKM Partners
On February 4, 2022, MKM Partners analyst Rohit Kulkarni raised the firm’s price target on Amazon.com to $4,100 from $4,000 and keeps a Buy rating on the shares. The company’s Q1 results were “better than feared” as its “soft” first- and third-person e-commerce was offset by an “impressive” acceleration in AWS, the analyst tells investors in a research note. The much-awaited Prime price hike, capex outlook commentary, and the “highly impressive” AWS backlog acceleration are all incremental positive catalysts for Amazon this year, Kulkarni adds.
Amazon.com price target raised to $4,100 from $4,000 at Credit Suisse
On February 4, 2022, Credit Suisse analyst Stephen Ju raised the firm’s price target on Amazon.com to $4,100 from $4,000 and keeps an Outperform rating on the shares. A positive mix shift on higher AWS and advertising revenue led to OI near the hi-end of guidance, Ju tells investors in a research note. While not all of the inventory misalignment headwinds are behind the company due to the onset of omicron and the resulting personnel challenges, 1Q22 should mark the last of the above-normal shipping expenses, the analyst contends.
Amazon.com Announces Fourth Quarter Results
On February 3, 2022, Amazon.com, Inc. (NASDAQ: AMZN) announced financial results for its fourth quarter ended December 31, 2021. Amazon reported Q4 EPS of $27.75 versus $14.09 a year ago. The company reported Q4 revenue of $137.4B versus the consensus estimate of $137.56B. Net income increased to $14.3B in the fourth quarter, or $27.75 per diluted share, compared with $7.2B, or $14.09 per diluted share, in fourth quarter 2020. Fourth quarter 2021 net income includes a pre-tax valuation gain of $11.8B included in non-operating income from the company’s common stock investment in Rivian Automotive, Inc., which completed an initial public offering in November.
Amazon increasing price of Prime membership in U.S.
Amazon said with its earnings report that the company “continues to invest heavily in Prime.” Amazon said: “In the last few years, Amazon has added more product selection available with fast, free, unlimited Prime shipping; more exclusive deals and discounts; and more high-quality digital entertainment, including TV, movies, music, and books. Since 2018, Prime Video has tripled the number of Amazon Originals, rolling out new series and movies like The Boys, The Wheel of Time, Tom Clancy’s Jack Ryan, The Underground Railroad, Sound of Metal, Coming 2 America, The Tomorrow War, and Being the Ricardos. This September, Prime Video will release the highly anticipated The Lord of the Rings: The Rings of Power and become the exclusive home of Thursday Night Football as part of a historic 11-year agreement with the National Football League (NFL). Since 2018 in the U.S., availability of Free Same-Day Delivery has expanded from 48 metropolitan areas to more than 90, items available for Prime free shipping have increased over 50%, and members have saved billions of dollars shopping Prime Day. This is all on top of new program benefits like prescription savings and fast, free delivery from Amazon Pharmacy and the continually growing Amazon Music for Prime members, Prime Reading, and Prime Gaming. With the continued expansion of Prime member benefits as well as the rise in wages and transportation costs, Amazon will increase the price of a Prime membership in the U.S., with the monthly fee going from $12.99 to $14.99, and the annual membership from $119 to $139. This is the first time Amazon has raised the price of Prime since 2018. For new Prime members, the price change will go into effect on February 18, 2022, and for current Prime members, the new price will apply after March 25, 2022, on the date of their next renewal.”
Best Buy selects AWS as preferred cloud provider
On February 3, 2022, Amazon (AMZN) announced that Best Buy (BBY) has selected AWS as its preferred cloud provider for cloud infrastructure services and its strategic partner for developing cloud engineering talent. This collaboration will help Best Buy further apply cloud technology across its retail operations and support the rapid innovation of its customer experiences and the work of its teams to create digital experiences that can enrich the lives of millions.
📉 AMZN Stock Technical Analysis
The positive divergence between large players volume and price is very bullish. The long-term trend is still negative, but the short-term trend is neutral. It is advised to wait a little bit longer to see how this turns out. Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up. AMZN is part of the Internet & Direct Marketing Retail industry. There are 86 other stocks in this industry. AMZN outperforms 93% of them. AMZN is currently trading in the middle of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so AMZN is lagging the market slightly.
There is support at 2852.86 from a horizontal line in the weekly time frame. There is also support at 2776.91 from a horizontal line in the daily time frame.
There is a resistance zone ranging from 3152.80 to 3269.83. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also resistance at 3327.59 from a horizontal line in the daily time frame. Finally, there is a resistance zone ranging from 3719.34 to 3731.41. This zone is formed by a combination of multiple trend lines in multiple time frames.
The technical rating of AMZN is bad and it also does not present a quality setup at the moment. AMZN stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when AMZN stock consolidates and has a Setup Rating of 8 or higher.