Shares of Amazon.com Inc (NASDAQ:AMZN) are trading slightly lower on Tuesday morning, caught up in a broader market decline driven by renewed trade tensions between the United States and China. The shares are down modestly despite the company’s strong signal of confidence ahead of the holiday shopping season.
What you need to know
On Monday, Amazon announced plans to hire 250,000 temporary workers, maintaining its strong staffing levels of the past two years and defying concerns about a potential slowdown in consumer spending.
Wall Street sentiment remains firmly positive, with several analysts recently upgrading the stock and raising their price targets. Goldman Sachs reiterated its “buy” rating in early October, raising its target to $275, while Wells Fargo upgraded its rating to “overweight.”
Investors are now awaiting the company’s next earnings report, due on October 30, to learn its direction. Analysts are forecasting significant quarterly revenue of approximately $177.7 billion and earnings per share of $1.56, which will serve as a key benchmark for the e-commerce and cloud computing giant.
Evolution of AMZN shares
Amazon shares were down 1.58% at $216.58 at press time Tuesday, according to Benzinga Pro. The stock is trading within its 52-week trading range of $161.38 to $242.52.
Amazon shares are below their 50-day moving average at $225.75 and the 100-day moving average at $221.68, indicating bearish momentum. The 200-day moving average at $214.38 could act as potential support, while resistance lies at the 50-day moving average.
How to buy AMZN stock
By now, you’re probably curious about how to participate in the Amazon market, whether it’s buying shares or even trying to bet against the company.
Stock purchases are typically made through a brokerage account. Many allow you to purchase “fractional shares,” which allows you to own portions of a stock without buying a whole share.
If you want to bet against a company, the process is more complex. You’ll need access to an options trading platform or a broker that allows you to “short” a stock by lending you the shares to sell. Otherwise, if your broker allows options trading, you can buy a put option or sell a call option at a strike price higher than the stock’s current price; either way, this will allow you to profit from a falling stock price.
Source: Yahoo!finanzas
