Amazon.com Inc (AMZN)

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Amazon.com Stock Pops on AI Startup Investment
By: Schaeffer's Investment Research | September 25, 2023

• The e-commerce firm will invest up to $4 billion in Anthropic

• The company is ramping up competition with Alphabet and Microsoft

Amazon.com, Inc. (NASDAQ:AMZN) is dipping its toes in the artificial intelligence (AI) industry. The e-commerce giant said it will invest up to $4 billion in cash in Anthropic, a prominent startup in the space, as it looks to ramp up competition with both Microsoft (MSFT) and Alphabet (GOOGL).

The security is up 0.4% to trade at $129.68 at last check, after taking a breather from its Sept. 14, one-year high of $145.86. The $128 level contained this pullback, after stopping selloffs in August and July as well. AMZN is up more than 53% so far in 2023, with support form its 100-day moving average.

The options pits lean bullish, per Amazon.com stock's 50-day call/put volume ratio of 2.21 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks in the 77th percentile of readings from the past year.

Attractively priced premiums make now an excellent time to gamble on AMZN's next move. The security's Schaeffer's Volatility Index (SVI) of 30% ranks in the 15th percentile of its annual range, suggesting options traders are now pricing in low volatility expectations.

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