JPMorgan Chase Made Tech Giant a “Top Pick”
The shares of Amazon.com, Inc. (NASDAQ: AMZN) are almost unchanged this morning, rising less than 0.1 percentage points to $ 3,053.10. Amazon Web Services (AWS) announces a brand new partnership with Ikon Science to develop a cloud-based software product that facilitates data access and removes barriers to knowledge. Ultimately, the solution will enable companies to save on personnel and capital investments and increase security. Separately, the company is being sued by a fulfillment employee in California over allegations that it did not provide scheduled meal breaks for employees. Amid all of this headline news, JPMorgan Chase made the tech giant a “top pick” and stated that if valued sensibly, it could show sustainable growth.
On the charts, the security has struggled with overhead pressures of $ 3,200 for the past few weeks. It’s been a rocky road for Amazon stocks since they hit an all-time high of $ 3,552.25 on September 2. Shares fell back to $ 2,870 levels before making at least four failed attempts at rallies between October and February. Now, AMZN appears to have gained a foothold in the $ 3,000 area and is at 60% year over year.
The analysts are mostly optimistic about the security: 29 of the 33 companies evaluated in the report have a “strong buy” rating, while the remaining four say “buy”. Additionally, the 12-month consensus target of $ 3,999.36 is a 31.9% premium over the stock’s current perch.
The option pits reflect this optimism, with calls being popular. This corresponds to the put / call open interest ratio (SOIR) of the Schaeffer Amazon share, which is in the eight percentile of its annual range. In other words, short-term options traders have rarely been more call-oriented.
Now it seems like a good opportunity to weigh AMZN’s next step with options as well. The Schaeffer’s Volatility Index (SVI) of the security is 26% below all values except for 5% of the last 12 months, which indicates that the stock currently has bonuses at attractive prices.