The shares of American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence company, Amazon.com Inc (NASDAQ: AMZN) was slightly down in the pre-market as volatility pushed the stock to the red zone. This current trend has failed to take into account the upcoming Amazon Prime Day, a period new offerings are expected to be unveiled.
At the time of writing, AMZN stock is 0.71% down, ar $3,462.20.
For the better part of this year, Amazon shares have not impressed longer-term investors as bear actions has largely kept the stock bound on a close-range for some time. More impressive market activity was triggered early in the day with AMZN inking close to 6 points to beat its Friday close of $3.486,90. The volatility has ushered in a correction, however, the impressions for a good uptick are currently being made evident.
Amazon is a tech giant with businesses cutting across several areas which consumers rely on. The company currently ranks as one of the firms that have the most expensive share, and the growing clamor for a stock split, a call, currently stalled with the earlier announcement of a change in the Chief Executive Position. While the stock split is not necessarily a drawback for the growth of the firm, its implementation is likely to fuel new interests.
Amazon Prime Day and Two Reasons Why Investors May Be Bullish on AMZN Stock
There are three key areas that inform the likelihood of a continued upsurge in Amazon shares, and these are outlined below.
Amazon Prime subscribers are one of the major livewires of the e-commerce giant, with revenues from this service a key aspect of Amazon’s business. There is a scheduled annual “Prime Day”, which is scheduled for June 21-22. This event represents one of the major shopping events of the year and is projected to bring in massive quarterly sales for the company.
With the stock market almost always influenced by growth, irrespective of the quarter its coming from, the stock price may see new bullish moves soon.
Amazon is gaining a good amount of traction when it comes to content streaming per its video services. While Netflix Inc (NASDAQ: NFLX) is arguably one of the biggest players in the streaming world, Amazon Video Prime is set to get new blockbusters this July, a development that can impact stock growth indirectly.
One of the highly anticipated moves, “The Tomorrow War” will begin showing on 2nd July and is billed to feature the star Chris Pratt who will be in the role of a soldier. Other movies in the pipeline include “Making the Cut” and “Luxe Listing Sydney,” all geared to help Amazon keep track of the competition and stay relevant.
Amazon was amongst the biggest beneficiaries during the COVID-19 pandemic and has continued to dominate the e-commerce ecosystem. While the trends in its relevance in this space are not all reflective in its share price, the company still maintains the lead ahead of the competition and serves as the ultimate cushion for its other products and services.