Amazon stock has pulled back from its high. I’ve picked up lots of call contracts that were purchased today.
The heavy call buying at the current level and the rising large players volume suggests that a lot of professional traders are executing a buy the dip move in Amazon. This is the same sort of buy the dip trading that has occurred for much of the last 8 years and there are no signs that this is changing, at least when it comes to Amazon stock.
We also received news today that Cerner Corporation announced a multi-faceted, strategic collaboration with Amazon Web Services (AWS) to accelerate health care innovation around the world. As part of this agreement, Cerner is naming AWS its preferred cloud provider. This expanded relationship is expected to power enhanced clinical experiences, increase efficiencies by lowering operational burdens for health care organizations and accelerate Artificial Intelligence, Machine Learning and other cutting-edge innovations thereby advancing better patient health outcomes.
Amazon Web Services also announced today that it has opened the AWS Middle East Region. With this launch, AWS now spans 69 Availability Zones within 22 geographic regions around the world, and has announced plans for nine more Availability Zones across three more AWS Regions in Indonesia, Italy, and South Africa. Developers, startups, and enterprises, as well as government, education, and non-profit organizations can run their applications and serve end-users from data centers located in the Middle East. As Saudi Arabia and other Middle East countries work to diversify their economies off of oil, AWS appears to be a vital component and partner in that effort.
Amazon stock does not meet the stringent requirements for inclusion in the GST Portfolio because of its valuation.
While AMZN has not made it on the long-term buy and hold portfolio, traders may be able to benefit from a short-term swing trade in Amazon stock.
Disclosure: I do not hold any position in AMZN stock.