Financial Trading Blog
Stock of the day 26/04/2016 – Amazon.com Inc
To say Amazon had a strong 2015 is a gross understatement; the stock managed to surge from a starting price of $312.35 (following a disappointing 2014) to $676.15 by the year’s close, a smidge below its all-time peak of $696.41.
Yet from this heady high Amazon saw a rather ugly drop at the start of 2016. Plunging below $600 as January came to a close, things were made all the worse by the company’s fourth quarter report. Amazon revealed earnings per share of $1 (a record for the company) off $35.75 billion in revenue, a rather marked drop from the $1.56 and $35.93 billion respectively expected by analysts. That earnings miss was the main fuel for Amazon’s post-results fall, the stock eventually hitting a 4 and a half month low of $474.29 by the start of February.
(Source: IT-Finance.com 26/04/2016)
However since then Amazon has seen a fairly healthy recovery, helped by the news that it was partnering with Morrisons as it expands its UK ‘Pantry’ service AND that customers could now buy a monthly subscription to the company’s Netflix-challenging Prime Video service. Amazon.com sits at a current trading price of $626.31 (IT-Finance.com, 26/04/2016).
In terms of Amazon’s figures on Thursday, analysts are expecting a 23% jump in revenue to $27.75 billion, with an even more impressive increase in earnings per share, from a loss of 12 cents at this point last year to 58 cents for Q1 2016.
Amazon.com Inc has a consensus rating of ‘Buy’ with an average target price of $728.22.
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