Shares of Amazon.com edged higher during the course of Tuesday’s session as Piper Jaffray reaffirmed an “overweight” rating and set a price objective of $900 on the company’s stock, according to reports.
With the recent examination of Alphabet’s Google search engine trends, it appears that the e-commerce giant unit has seen 25% to 27% growth on a year-over-year basis in the September quarter, compared to the 23% to 26% growth estimates.
Amazon.com is gaining about 15% year-over-year, according to Piper Jaffray, which suggests that the global e-commerce market could be taking "material market share," the company noted.
Piper Jaffray is expecting Amazon.com shares to be the best positioned stock in the company’s coverage network in the next five years.
Amazon Shares: Among the Spotlight Today
Amazon.com, Inc. is among the stocks included in the spotlight today along with the Alphabet Inc., Las Vegas Sands Corp., MGM Resorts International, and Wynn Resorts Ltd.
Analyst at Piper Jaffray Gene Munster currently weighed in on the company’s stock today, citing the positive unit growth of the e-commerce giant.
Munster remained confident that Amazon.com will continue to improve its market share in the near term. Moreover, Amazon has been the most topic of investors after the company updated its customer review policy, which aimed at prohibiting incentivized reviews unless they are under the Amazon Vine program.
Incentivized reviews are actually done by people that post opinions in exchange for a discount or free product as long as they disclosed their concern. Hence, the Amazon Vine program is where the company invites trusted reviewers to post their opinions on a pre-released and new products.
Current Stance of Amazon Shares
The chart below illustrates AMZN stock’s price action amid seeing positive growth with Alphabet’s Google search engine trends, along with the recent changes in Amazon’s customer review policy.
Meanwhile, market participants were given signal to perform Buy position on the trend’s third candle, which in fact did rally in a light trading volume, reaching a peak level of 839.84 on September 30. However, the stock price was seen breaking out to the downside and nearly moving away from the support line in the next session.
In essence, the shares are expected to decline after showing a downward movement of the price, supported by the breakdown of the previous session.
Given the recent surging shares of Amazon.com, lifted by Piper Jaffray’s reaffirmed rating on the stock, we conclude that stock prices will slightly decline for a short term period alone as the customer review policy could affect the price movement with market participants trading with caution.
However, it could as well rebound after its fall as Piper Jaffray’s reiteration on the stock had caused a huge movement in the market.
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