05.05.2020 AMAZON Daily Analysis

05.05.2020 AMAZON Daily Analysis

Amazon was one of the few gainers in the stock market on Monday gaining 1.31% and closing at $2315.99. Monday happened to be a particularly red day for the stock market as most stocks declined due to uncertainties in regard to the reopening of the economy and a trade war with China. Amazon just recently released its first-quarter earnings report and it was very clear that the Covid-19 had had some toll on the company. As a result of stay-at-home measures Amazon saw increased sales and even though this sounds good it's not all roses and rainbows because it means the expenditure goes up and as a result eats into the profits. Amazon reported revenue of $75.5 billion and an operating income of $4 billion. A 5-star Analyst Brian White from Moness feels that Amazon is on a good path because he raised his price target from $2650 to $2800 and had this to say about the company: “During this crisis, Amazon has proven irreplaceable in delivering the daily necessities to people around the world, a fact that we believe will increase the number of customers on the platform, expand the list of products purchased by existing customers and accelerate the shift to eCommerce at large. Ultimately, we believe Amazon will emerge from this crisis with a stronger brand and even more durable business.” Previously after the company had released it report the stock fell down because the CEO Jeff Bezos asked the shareholders to "take a seat" as the company tries to deal with the effects of the Covid-19 and even though this might have come out as a little bit harsh investors shouldn't really be scared because the company will come out of this stronger.