Yes, they still can go to grocery stores - even though the country continues to see an increase in statewide and local lockdowns. But why risk getting sick or spreading sickness when you can order from Amazon?
That seems to be the consensus, as the company struggles to keep up with orders. Its Amazon Prime Pantry division had to announce it would not take new orders for the time being, as it attempted to restock its own supplies and fulfill existing orders.
Reports earlier this month said Amazon would need to hire 100,000 new employees to help keep up with demand. This type of outlook is one reason Oppenheimer analysts maintained their outperform rating on Amazon stock, while assigning a $2,400 price target.
They said social distancing and shelter-in-place orders should help drive e-commerce usage. For now, the stock has been reflecting that bullish stance. Let’s look at the charts.
Trading Amazon Stock
A look at the daily chart highlights several things, perhaps most notably the recent volatility.
Amazon shares topped out near $2,175 after lagging most of their megacap tech peers. After better-than-expected earnings, investors bid Amazon to all-time highs.
Of course, the Seattle company didn’t get to enjoy the party for long before coronavirus-induced selling fears sent it lower.
The stock bottomed near $1,625, then quickly ricocheted higher. The rebound has been aggressive, with shares briefly rallying above $1,950 on Friday. Now it's pulling back, and investors will need to see support hold up.
The shares are above $1,825, a notable level over the past year, while also maintaining above the 100-day and 200-day moving averages.
Should this zone hold as support, a retest of the 50-day moving average and $1,950 may be in order. Above that, and $2,000-plus is possible.
Should support fail, investors have to be prepared for a possible decline to the $1,675 to $1,700 zone. Below that puts the March low back on the table.