Amazon shares fall for a fifth straight session on Wednesday, e-commerce giant to acquire Israeli firm E8 Storage

According to a Wednesday report by Israeli business news website, Globes, Inc has agreed to acquire storage technology startup firm E8 Storage.

Amazon shares closed lower for a fifth consecutive trading session on NASDAQ on Wednesday. It has also been the steepest daily loss since June 25th. The stock went down 1.67% ($31.75) to $1,866.78, after touching an intraday low at $1,849.44, or a price level not seen since June 12th ($1,844.38).

Shares of Inc have surged 24.29% so far in 2019 compared with an 18.89% gain for the benchmark index, S&P 500 (SPX).

In 2018, Amazon’s stock went up 28.43%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

According to E8 Storages Twitter account, the firm provides flash storage with a rack-scale architecture for the enterprise and software-defined cloud.

The deal values the storage tech startup firm within the range of $50 million to $60 million, Globes reported.

After the acquisition is finalized, employees of E8 Storage will be based at Amazon Web Services development center in Tel Aviv, the news website reported.

Analyst stock price forecast and recommendation

According to CNN Money, the 42 analysts, offering 12-month forecasts regarding Inc’s stock price, have a median target of $2,250.00, with a high estimate of $2,615.00 and a low estimate of $2,080.00. The median estimate represents a 20.53% upside compared to the closing price of $1,866.78 on July 31st.

The same media also reported that at least 43 out of 47 surveyed investment analysts had rated Inc’s stock as “Buy”, while 4 – as “Outperform”.

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