Amazon.com Inc (AMZN)

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Amazon: October Week 1 Investor Highlights
By: Market Realist | October 5, 2019

Ranking among the top companies based on revenue, Amazon (AMZN) is probably one of the stocks that most investors track. In the current week, from September 30 to October 4, the stock had some volatility. The price movement during the entire week was in the range of $1,755.60 to $1685.06.

Amazon stock movement

At the time of the market open on Monday, September 30, the stock price was $1726.99. At the closing time on Friday, the stock quote was $1739.65. AMZN stock returned approximately 0.7% for the week. Long-term investors might not be overly excited about this movement. However, it seemed like intraday traders and scalpers would have made the best of the market volatility.

At the beginning of the week, the e-commerce stock returns trailed behind the S&P 500 index returns. However, from early Thursday morning, the stock rebound. Since then, AMZN has been outperforming the S&P 500 index until the market closed on Friday.

Weekly highlights: From September 30 to October 4


The chart shows the daily price movements for Amazon: the opening price of the stock, daily high and low, and the closing price for each day of the week. The stock showed promise at the beginning and the end of the week.

However, on Thursday, the stock dipped to its lowest price of the week at $1,685.06. The stock turnover was the highest on Thursday. Stock turnover is the measure of the liquidity of the stock. Here are some highlights of the week for Amazon Stock.

Day 1: September 30, 2019

The e-commerce company announced that it had made a record first-day turnover in its franchise Great Indian Sale. Revenues in the first 36 hours were equal to 0.2 % of June 2019 quarter revenues. Amazon sold approximately $7.07 million worth of merchandise.

During the week, the company launched AWS IQ. The Amazon Web Services IQ is a platform that bridges small business owners and third party AWS experts. By the end of the day, the company stock had moved upwards by 0.51%.

Day 2: October 1, 2019

On Tuesday, a company announcement said that it would be launching its Amazon Go stores at airports and movie theatres. As the trading day came to a close, news broke out about a congressional inquiry. Tech giants like Amazon, Facebook, and Google were called upon by the chairwoman of the Small Business Committee, Nydia Velazquez. The meeting may be held either at the end of the current month or at the beginning of November.

By the end of Tuesday, the closing price was less than its opening price. Probably the news about the congressional inquiry shrunk the stock. During the day, AMZN declined by -0.59%.

Amazon day 3: October 2, 2019

The trading volume on Wednesday was higher by 5.29% compared to the previous day, per a Reuters report. The adverse news on Tuesday and the relatively higher trading volumes may have led to the downward movement of the stock on Wednesday. During the day, the stock fell by -0.83%.

Day 4: October 3, 2019

Amazon stock came out of its downward spiral on Thursday. In the early hours of trading, Amazon touched its weekly low of $1685.06. Amazon stock gained momentum in the second half of the day. Amazon stock returns were higher than the S&P 500 at market close. During the day, the stock grew by 0.67%.

On Thursday, Amazon announced that it is going to launch Alexa in Brazil. On the same day, there were reports about a conflict between Amazon and Disney over ad revenues from Fire TV.

Day 5: October 4

On Friday, Amazon was outperforming the S&P 500. Amazon’s daily returns were highest on Friday at 0.79%. On October 4, the company also announced redemption of its 2.600% long-term notes issued in 2014. The redemption date for the notes is on November 5.

Conclusion on Amazon

By the end of the week, investors who had held the stock without changing their positions gained just above 0.7%. During the week, Amazon drone delivery also came into the spotlight after UPS announced the grant of FAA certification for drone delivery.

Meanwhile, Amazon Prime Air VP, Gur Kimchi, was heard talking about Amazon drone tech in an Amazon co-sponsored event, Greentech Conference 2019. Amazon stock could gain much more spotlight once drone delivery gets approved by the regulators.

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