Amazon Price At Record Highs As Online Orders Jump On Coronavirus Lockdown

Amazon price ended yesterday at record highs capitalizing the idea that online retail is the big winner from the coronavirus crisis. Online shopping has accelerated during the COVID-19 lockdown benefiting Amazon, Walmart, Etsy, and eBay, and also the online entertainment providers. I expect this trend for e-commerce to continue as consumers will shift from stocking up on food to a wider variety of supplies, and many analysts predict that online retail sales will grow by 25% in 2020.

Amazon announced a significant expansion in its fleet as the online orders volumes explode. The leases of air cargo modified Boeing 767-300 will increase the company’s number of available aircraft from 70 to 82. Amazon (AMZN) is also planning to open three new hubs, one in Florida, another in Kentucky, and a third in California.

Looking at the fundamentals, the current valuation is very demanding, with a P/E ratio at 118.63 and a book value at 119.25. The company will report the quarterly earnings on July 26 with analysts expecting the earnings at $1.48 per share and the revenues at 80.22 billion. The last quarter Amazon reported earnings at 5.01 per share below the analyst’s expectations and revenue was at 75.45 billion better than Wall Street consensus.

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Amazon Technical Analysis

Amazon started 0.65% higher at 2,540 making fresh record highs, as the bullish momentum continues making higher highs and higher lows. The steep upward trend line supports a move higher while the RSI index after minor corrections still leaves room for upside.

On the upside, first resistance stands at 2,545 the daily high. In case the stock breaks higher, then the next resistance would be met at 2,600 psychological mark. 

On the flip side, initial support for AMZN will be met at 2,525 the daily lows. If Amazon stock price breaks below, might test the next support zone at 2,435 the low from June 5th. More bids might emerge at 2,331 the low from May 27th.  

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