Amazon’s stock (NASDAQ: AMZN) is taking a break after last week hitting a new all-time-high, amid the fallout of a recent row associated with potential neglect of Amazon workers’ health during the COVID-19 pandemic.
The upshot of this fallout is that Amazon’s web services VP, Tim Bray, has quit, in response to the firing of two leaders of an Amazon workers’ organization who were enquiring about protection for workers from the COVID-19 virus.
The other piece of news, coming just before Bray’s departure, was Amazon’s earnings report. One of the few enterprises well placed to thrive in a COVID-19 world, Amazon reported a windfall sales increase of 26%.
The e-commerce giant also stated its intention to heavily invest in worker health with Q2 profits, and to increase capacity for the surge in demand for home-delivered goods including food.
On April 30, Amazon stock price eeked in a new all-time-high of $2,470. But since these events (April 30 - May 1), AMZN has fallen about 6% in total. It seems likely that the negative press has affected the stock price somewhat.
This fall is completely reasonable, as a simple correction from the highs. At this point, the market has had a couple of days to ingest both the earnings report and Tim Bray’s departure.
We should look for Amazon to hold a price of $2,200, in order to remain stable near its new highs. If it cannot hold up there, we might consider a stronger correction in order. As CryptoGlobe reported, JP Morgan Chase recently raised its price target for Amazon stock to $3,000.
JPMorgan's update projections see it match Goldman Sachs and Susquehanna as the biggest bulls in Wall Street for the e-commerce giant. All three firms see AMZN shares hit $3,000 in the future.
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