Amazon shares retreated the most in 26 months during the trading session on Monday, after US President Donald Trump once again criticized the e-commerce company in relation with how its deliveries via the United States Postal Service are priced. Yesterdays comments by President Trump followed another set of accusations last week, which focused on Amazon not paying enough tax, forcing smaller retailers out of the market as well as causing the postal system to lose money.
Amazon shares closed lower for the sixth time in the past eight trading sessions on Monday. It has also been the steepest daily loss since February 5th 2016. The stock went down 5.21% ($75.35) to $1,371.99, after touching an intraday low at $1,355.41, or a price level not seen since February 12th ($1,344.01).
In the week ended on April 1st the shares of the e-commerce giant lost 3.22% of their market value compared to a week ago, which marked a third consecutive period of decrease.
The stock has dropped 5.21% so far during the current month, following a 4.30% slump in March. The latter has been the first drop out of three months and also the largest one since November 2016.
For the entire past year, the shares of the NASDAQ-listed company rose 55.96% following another 10.95% surge in 2016.
“Only fools, or worse, are saying that our money losing Post Office makes money with Amazon”, President Trump said in a tweet on Monday. “They lose a fortune, and this will be changed. Also, our fully tax paying retailers are closing stores all over the country…not a level playing field!”
How much Amazon pays the US Postal Service (USPS) has not been revealed publicly. However, according to some analyst opinions, the payments are roughly half what companies such as FedEx Corp or United Parcel Service Inc would charge Amazon for a package delivery.
“President Trump’s comments are consistent with industry sources we have spoken to in the shipping industry, who often label Amazon’s deal with the USPS as a sweetheart deal”, DA Davidson analyst Tom Forte wrote in a client note, cited by Reuters.
“An argument, however, could be made that the USPS was losing billions before it expanded its service offerings for Amazon and would, still, likely lose billions if Amazon discontinued its use of the USPS tomorrow”, the analyst added.
According to CNN Money, the 41 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $1,650.00, with a high estimate of $1,850.00 and a low estimate of $980.00. The median estimate is a 20.26% surge compared to the closing price of $1,371.99 on April 2nd.
The same media also reported that 38 out of 47 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 4 – as “Hold”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Amazon stock are presented as follows:
R1 – $1,377.97
R2 – $1,383.95
R3 (Range Resistance – Sell) – $1,389.93
R4 (Long Breakout) – $1,407.87
R5 (Breakout Target 1) – $1,428.82
R6 (Breakout Target 2) – $1,438.02
S1 – $1,366.01
S2 – $1,360.03
S3 (Range Support – Buy) – $1,354.05
S4 (Short Breakout) – $1,336.11
S5 (Breakout Target 1) – $1,315.16
S6 (Breakout Target 2) – $1,305.96
By using the traditional method of calculation, the weekly levels of importance for Amazon.com Inc (AMZN) are presented as follows:
Central Pivot Point – $1,462.83
R1 – $1,560.47
R2 – $1,673.59
R3 – $1,771.23
R4 – $1,868.86
S1 – $1,349.71
S2 – $1,252.07
S3 – $1,138.95
S4 – $1,025.82
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