Amazon’s share price since it reached its all-time high at $189.78 in July 2021, has been falling. In December 2022, price hit $81 which is the lowest price since March 2020. Currently, $81 is the support level.
As 2023 opened, price initially consolidated around the support level. But in the second week of January, a bounce occurred. This bounce lifted price to $114.22 by the second day of February 2023. This is the highest price that the Amazon stock has attained in 2023.
After this rally, price dropped. As at last week on the 13th, Amazon’s share price had fallen to $88.71, the lowest price so far this month. There was a bounce that took price to $100 but the bears suddenly kicked in. Our analysts have come to conclude that this bearish takeover was probably a result of the recent mass layoff by Amazon. With this recent layoff, Amazon has totaled 27,000 employees that it has laid off this year.
Taking all this into account, our analysts think the bulls will reclaim the reins from the bears soon and price will rise to $120 in the next few weeks.
Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here