Why Amazon.com, Inc. (AMZN) Shares Are Bucking Today’s Market Trend


While the overall market is down big this morning, shares of Amazon.com, Inc. (NASDAQ:AMZN) are some of the few which are in the green today. The reason seems more to do with technical trends than with company fundamentals. It appears as if investors feel that shares of Amazon.com, Inc. (NASDAQ:AMZN) may have hit a bottom earlier this week in the $480 price range. As the stock trades down more than 28% from highs seen late last year, investors likely now see Amazon.com, Inc. (NASDAQ:AMZN) shares as a value proposition.

Although the stock is still trading at a staggeringly high PE ratio of 398, growth for the company continues at a torrid pace, and expenses seem to be viewed as a positive in order to continue growing the company’s many vertical businesses. As long at the market doesn’t trend too much lower, it is very possible that $480 could be a solid support moving forward.

The stock is up 0.76% or $3.72 following the news, hitting $494.2 per share. About 723,569 shares traded hands. AMZN has risen 14.14% since July 8, 2015 and is uptrending. It has outperformed the S&P500 by 23.01%.

From a total of 26 analysts covering Amazon.com (NASDAQ:AMZN) stock, 22 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 85% of the ratings are positive. The highest target price is $900.0 while the lowest target price is $525. The mean of all analyst targets is $734.31 which is 48.59% above today’s ($494.2) stock price. Amazon.com was the topic of 64 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Susquehanna initiated shares on January 15 with a “Positive” rating. M Partners initiated shares with a”Buy” rating and a $800.0 target share price in their report from a December 15. Monness Crespi & Hardt downgraded AMZN stock in a recent report from January 4 to a “Neutral” rating. Barclays Capital maintained the rating on December 1. Barclays Capital has a “Overweight” rating and a $850 price target on shares. Finally, Macquarie Research maintained the stock with a “Outperform” rating in a report they issued on a December 22.

The institutional sentiment increased to 1.49 in Q2 2015. It’s up 0.37, from 1.12 in 2015Q2. The ratio increased, as 67 funds sold all their Amazon.com, Inc. shares they owned while 376 reduced their positions. 166 funds bought stakes while 493 increased their total positions. Institutions now own 325.29 million shares which is 4.94% more than the previous share count of 309.99 million in 2015Q2.

Huntington Steele Llc holds 23.61% of its total portfolio in Amazon.com, Inc., equating to 103,872 shares. Tiger Global Management Llc owns 3.19 million shares representing 20.13% of their total US portfolio. Moreover, Tybourne Capital Management Hk Ltd has 18.16% of their total portfolio invested in the company, equating to 504,001 shares. The Washington-based Brighton Jones Llc has a total of 17.93% of their portfolio invested in the stock. Telemark Asset Management Llc, a Massachusetts-based fund reported 100,000 shares owned.

Since May 4, 2015, the stock had 0 insider purchases, and 9 sales for a total of $25.00 million in net activity. Stonesifer Patricia Q sold 6,250 shares worth $3.16 million. Wilke Jeffrey A sold 5,908 shares worth $3.16 million. Reynolds Shelley sold 720 shares worth $381,752. Olsavsky Brian T sold 2,098 shares worth $1.11 million. The insider Zapolsky David sold 2,322 shares worth $1.23M.

Amazon.com, Inc. is an e-commerce company. The company has a market cap of $236.75 billion. The Firm sells a range of services and products through its Websites. It has 398.5 P/E ratio. The Company’s products are offered through consumer-facing Websites, which include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers.