Why the AMZN Weekly
Options Trade was Executed?…..
Amazon.com, Inc. (NASDAQ: AMZN) is set to hit a major
milestone in 2024: Becoming the largest retailer in the US, according to J.P.
Morgan analysts Doug Anmuth and Bryan M. Smilek. Amazon dominates two lucrative
industries: e-commerce and cloud computing.
this comes to pass, Amazon will be unseating Walmart (WMT) as the country's
largest retailer. It would be a seismic shift, one driven by increased
e-commerce penetration, faster delivery times, and the stickiness of Amazon
Prime. J.P. Morgan estimates show that, in 2023, Amazon's gross merchandise
volume, or GMV, will grow 11.6% year-over-over to $477 billion.
e-commerce business will also benefit from increased business-to-business
capabilities, new fintech offerings like Buy With Prime, and estimated growth
in the number of third-party sellers operating in the company's marketplace,
Morgan estimates that there will be about 300 million Prime members globally by
the end of this year. In 2021, then-CEO Jeff Bezos said the company had
"more than 200 million Prime members worldwide."
Also, Amazon's Prime customer loyalty
service is among the company's crown jewels. The company offers free overnight
and second-day shipping on a broad cross-section of the products on its site,
but that's just the beginning.
The AMZN Weekly
Options Trade Explained.....
** OPTION TRADE: Buy AMZN JUL
14 2023 130.000 CALLS - price at last close was $3.47 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the AMZN Weekly Options (CALL) Trade on Monday, June 26, 2023, at 9:42, for $3.50.
Sold the AMZN Weekly Options Contracts on Monday, June 26, 2023, at 9:58, for $4.48; a
potential profit of 28%.
Re-entered the AMZN Weekly Options (CALL) Trade on Monday, June 26, 2023, at 10:42, for $3.50.
Re-sold the AMZN Weekly Options Contracts on Monday, June 26, 2023, at 10:56, for $4.15; a
potential profit of 19%.
Re-bought the AMZN Weekly Options (CALL) Trade on Monday, June 26, 2023, at 1:14, for $2.34.
Re-sold HALF the AMZN Weekly Options Contracts on Tuesday, June 27, 2023, for $3.55; a
potential profit of 62%.
Holding the remaining AMZN weekly options contracts
for further profit before expiry.
Don’t miss out on further trades – become a
Amazon.com, is the world's largest and leading portal for eCommerce. It was
founded by Jeff Bezos, incorporated in 1994, and later went public in 1997. The
company is headquartered in Seattle, Washington, and is a member of the influential
FAANG group of stocks. When it comes to stocks, Amazon is proof that small
companies can do big things; the AMZN stock price was pennies when it was first
listed and now it trades well over $100 (split adjusted) per share.
is not a true retailer nor a pure-play manufacturer but in the business of
connecting consumers and merchants together. The website was first created as a
means of selling books at a discount but it has since grown to include most
verticals in the retail sector. A few of the products the company does
manufacture are the Kindle and Fire Tablets, Fire TVs, and smart home devices
like Echo. Echo is powered by an AI personality named Alexa which can take
vocal commands from its users.
Amazon operates in three segments including North America, International, and
Amazon Web Services. The first two segments are the core retail business while
Amazon Web Services includes a host of Internet-related services for consumers
and businesses alike. A little-known fact is that Amazon Web Services is as
important to the function of the Internet as Google because of the
infrastructure it provides and it hosts so many business websites.
provided by Amazon for merchants include listing, fulfillment, and advertising
as well as subscriptions. Services provided by Amazon Web Services include
cloud computing, storage, database maintenance, analytics, machine learning,
and even artificial intelligence. In regard to the company's operations, Amazon
Web Services is the smaller of the three segments but is a fast-growing and
well-established part of the business that has had a positive influence on the
AMZN stock price.
many ancillary services provided by Amazon is Kindle Direct Publishing. This is
a cloud-based service that enables writers and publishers to publish their
works directly in the Kindle Store. Kindle, if you are unaware, is an
Internet-connected tablet designed for reading books but also streams other
forms of entertainment. Amazon also develops and publishes its own media
content that is available via Kindle or the Amazon App that can be found on
most smart TVs.
also a disruptor, moving into new digital markets whenever it thinks it can
make a profit. The move into streaming is only one example, another is a push
into healthcare. Amazon Prime is another disruptive move and is a subscription
service that entitles members exclusive access to Amazon services.
stock price can be affected by factors including the pace of revenue growth,
profitability, growth in the AWS segment, and any stock splits that may occur.
The Amazon share price was impacted by splits 4 times between the IPO in 1997
and June 2022 and additional splits should be anticipated. The forecast for
Amazon stock, splits aside, is for steadily increasing price action punctuated
by pullbacks, corrections, and consolidations. While there is competition for
Amazon, this company is entrenched and will stand the test of time because
eCommerce is the way businesses thrive in today's markets.
Amazon is the
world's largest online retailer by market cap. The company began as an online
bookseller and has since grown to encompass virtually every category of retail.
Besides selling products through its e-commerce platform, Amazon owns
subsidiaries including Whole Foods Market and home security company Ring.
Amazon's fastest-growing areas of business are cloud computing services,
subscription products like Amazon Prime, and streaming movies and other
- Revenue (TTM): $502.19 billion
- Net Income (TTM): $11.32 billion
- Market Cap: $916.82 billion
- 1-Year Trailing Total Return: -44.35%
Further Catalysts for the AMZN Weekly Options Trade…..
The growth of
Amazon shows the sort of resilience that Wall Street has been hoping to see out
of e-commerce businesses, which had a tough 2022. Though e-commerce businesses
like Amazon saw major booms during the pandemic, last year saw a pullback. It
was the first year since 2009 that US e-commerce grew less than 10%, the
analysts noted, adding just 8.5% year-over-year, "likely driven by macro
pressures, the resurgence of [brick-and-mortar] retailers, and the shift toward
omni-channel retail following the pandemic," Anmuth and Smilek wrote on
Amazon's GMV is growing due to "solid growth in under-penetrated
categories" like grocery and apparel, "faster delivery speeds, with
2023 tracking toward Amazon’s fastest delivery speeds ever," and the
"Prime flywheel," the idea that the company's much-discussed
subscription service builds momentum at every step in the experience, the
has a massive grip on the e-commerce marketplace and, at the end of 2023, J.P.
Morgan analysts expect the company's e-commerce market share to be 42.2%, an
increase of 106 basis points year-over-year.
Morgan's bullishness on Amazon also ties back to the belief that the company
will leverage generative AI in its e-commerce operations, suggesting that a
"ChatGPT-style product search would create an interactive conversational
experience" which the analysts believe would "enable Amazon other
retailers to provide a more personalized customer experience" and that AI
could also "could enable Amazon and other retailers to leverage a breadth
of customer purchase history and data and enhance personalized
In the U.S.,
the tech company holds a 38% market share in e-commerce, with the second-largest
share being Walmart, at 6%. Amazon's dominance in online retail means it
has the most to gain from the industry's growth. Meanwhile, data from eMarketer
shows the e-commerce market hit $5.7 trillion in 2022, with online sales making
up about 20% of all retail purchases. That percentage is projected to hit 24%
by 2026, with the market rising to a value of $8 trillion.
has a solid position in the booming artificial intelligence (AI) industry as
the home of the world's biggest cloud platform, Amazon Web Services. The cloud
service boasts a leading 32% share of the market, ahead of competitors like
Microsoft's Azure and Alphabet's Google Cloud
AI & Code Whisperer.....
Amazon used AI and machine learning for functions like product recommendations
and inventory management. It also uses it for practical considerations like the
fastest and cheapest modes of fulfillment and delivery. With Amazon's years of
data through probably billions of purchases, these are powerful tools that
generate higher sales, efficiency, and customers satisfaction.
technological developments have changed generative AI from what was lackluster
performance to incredible results, which resulted in the explosion of ChatGPT
and similar tools when they were introduced a few months ago. Never one to sit
out what could be a lucrative opportunity, Amazon has entered the generative AI
ring as well.
management announced that it was launching generative AI capabilities for AWS,
and they have significant far-reaching consequences that will change how
programmers work. The effort is underpinned by technology called Amazon
Bedrock. Amazon Bedrock is a foundation model (FM), or a large-language model,
that is so developed from machine learning and myriad data points that it can
provide truly productive and reliable generative AI tasks.
service Amazon launched is called Code Whisperer. This service lets developers
give a prompt for what code they want to develop, and the system provides the
these tools use technology similar to AutoGPT, a next-level tool that works
with ChatGPT. Users provide it with an overarching goal, and the technology
self-generates the prompts necessary for each step of attaining that goal. It's
even more humanlike than ChatGPT, and it can learn and improve as it generates
gain access to streaming movies and television shows via Amazon Prime Video,
more than 100 million songs via Amazon Music, video games via Prime Gaming,
discounts at the company's Whole Foods Market grocery store, and digital books
via Prime Reading. Customers get all this and more included with the cost of
subscription, which runs $139 per year, or $14.99 per month.
are keen to get their money's worth, too, which is why Prime subscribers tend
to lay out much more than nonmembers, according to estimates compiled by
Consumer Intelligence Research Partners (CIRP). Figures released last year by
CIRP estimate that Prime customers spend roughly $1,200 per year on average,
double the $600 per year spent by nonmember customers.
illustrates the value of Amazon's customer loyalty program -- but that's just
the tip of the iceberg.
One of the
more useful trappings of Amazon Prime is Subscribe & Save (S&S), the
company's recurring shipments service. The program allows customers to opt for
regularly scheduled deliveries of their most-used or favorite items at set
Amazon. had its price target raised by analysts at Loop Capital from
$140.00 to $180.00 in a research note issued on Thursday. Loop Capital’s price
objective would suggest a potential upside of 39.18% from the stock’s current
On June 21, Jefferies analyst Brent Thill raised his price
target on AMZN stock to $150 from $135. The analyst maintains a bullish outlook
on the company’s prospects and expects it to benefit from improving
profitability, recovery in the AWS segment, and artificial intelligence.
While AWS is likely to support growth, JPMorgan analyst Doug
Anmuth believes Amazon could become the largest U.S. retailer in 2024,
surpassing Walmart. Anmuth termed AMZN stock as the “Best Idea” in its sector
and reiterated a Buy rating on June 20.
Earlier in May, Mizuho Securities analyst James Lee
highlighted that the “AWS’ Gen-AI (Generative AI) demand has been accelerating
due to its ease-of-transition and product differentiation.” Further, due to the
premium pricing of AWS’ Gen-AI, it will likely support revenue and
According to the issued ratings of 43 analysts in the last
year, the consensus rating for Amazon.com stock is Moderate Buy based on the
current 2 hold ratings and 41 buy ratings for AMZN. The average twelve-month
price prediction for Amazon.com is $146.41 with a high price target of $270.00
and a low price target of $111.00.
of inflationary cost headwinds, reacceleration in AWS’ growth rate, cost-saving
measures, and benefits from AI tailwinds position AMZN well to deliver solid
financial performances in the future.
is up 54% so far this year, and investors should expect continued upward
movement as it innovates with new technology and dominates new fields.
Amazon.com has a quick
ratio of 0.69, a current ratio of 0.92 and a debt-to-equity ratio of 0.43.
Amazon.com has a 52-week low of $81.43 and a 52-week high of $146.57. The
business’s 50-day moving average price is $115.35 and its 200 day moving
average price is $102.12. The firm has a market cap of $1.33 trillion, a P/E
ratio of 307.93, and a P/E/G ratio of 2.44 and a beta of 1.26.