Amazon (NASDAQ:AMZN) finds itself in a tough spot. As a mature growth stock, it’s sidestepping a lot of the pain we’re seeing in tech. As these high-flying growth stocks get run over, AMZN stock is down “just” 17% from its highs. While some may scoff at that, consider that Netflix (NASDAQ:NFLX) is down almost 70% from its all-time high just five months ago.
That said, Amazon doesn’t have the financial firepower as some of its larger FAANG peers. Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) have robust balance sheets and cash flow. While Amazon has impressive numbers as well — after all, it does command a $1.56 trillion market cap — it’s not as financially strong as these firms.
However, that doesn’t mean there isn’t upside to AMZN stock. In the last two days there has been a flurry of analyst actions, including:
- Wedbush, Buy Rating, $3,950 Price Target
- UBS, Buy Rating, $4,550 Price Target
- Citigroup, Buy Rating, $4,100 Price Target
- Cowen & Co., Buy Rating, $4,400 Price Target
- MKM Partners, Buy Rating, $4,000 Price Target
Put it all together and you end up with five buy ratings in the last two days. The average price target in that group is $4,200, implying about 35% upside from current levels. That’s just slightly ahead of the average price on Wall Street, of $4,113.
On June 3, Amazon will do a 20-for-1 stock split. While it doesn’t necessarily change the company’s value, it’s often viewed as a bullish catalyst for the stock price. The company announced its split last month and since doing so, AMZN stock is up about 10%.
Further, the company recently announced “Buy with Prime,” which will roll out throughout this year. Essentially millions of Prime members in the U.S. will be able to shop right from online stores with the same perks they get from Amazon Prime — free delivery, free returns on eligible orders and a seamless checkout experience.
Don’t forget, the company recently announced a price hike for Prime, too.
Click to Enlarge
While the fundamental catalysts are there, AMZN stock has not been trading all that well.
Shares remain below the key $3,185 level, as well as the 10-week and 21-week moving averages. Amazon will need to regain these levels for bulls to regain control. On the downside, it needs to hold $2,880; otherwise, it risks a dip back down toward $2,700.
Keep in mind, Amazon reports earnings on April 28.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
