Amazon shares gain for a third straight session on Wednesday, Amazon Shipping service to be suspended

Amazon.com Inc (AMZN) intends to put to a halt a delivery service, aimed at competing with United Parcel Service and FedEx Corp in the United States, Reuters reported.

Amazon shares closed higher for a third consecutive trading session on NASDAQ on Wednesday. The stock went up 1.56% ($31.40) to $2,043.00, after touching an intraday high at $2,044.00, or a price level not seen since February 21st ($2,144.55).

Shares of Amazon.com Inc have risen 10.56% so far in 2020 compared with a 14.88% loss for the benchmark index, S&P 500 (SPX).

In 2019, Amazon’s stock went up 23.03%, thus, it underperformed the S&P 500, which registered a 28.88% gain.

An earlier report by the Wall Street Journal stated that Amazon Shipping service would be paused from June, as the e-commerce giant needed personnel and capacity to deal with an increase in orders of its own clients.

Amazon Shipping service is offered in several cities across the United States, including Los Angeles.

“We regularly look at a variety of factors across Amazon to make sure we’re set up in the right way to best serve our customers,” a spokesperson for Amazon said in an emailed statement, cited by Reuters.

Analyst stock price forecast and recommendation

According to CNN Money, the 44 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $2,404.00, with a high estimate of $2,788.00 and a low estimate of $1,850.00. The median estimate represents a 17.67% upside compared to the closing price of $2,043.00 on April 8th.

The same media also reported that at least 42 out of 48 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 2 – as “Hold”.

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