AMZN Analysis: Will Amazon hit last month’s highs again in May?

Amazon stock has been considerably volatile recently, something that is relatively rare for large-cap stocks listed on premium North American exchanges.

One of the main reasons for their overt popularity among so many people with differing means and expectations is their relative stability compared with companies with less stringent governance and less of a portfolio of shareholders who demand a conservative corporate path.

Amazon stock has been climbing steadily over the past five days, registering a 2.86% increase during that period.

Looking at that graph in isolation may well be a source of encouragement, as it depicts Amazon as a veritable stalwart, going steadily from strength to strength. However, when looking back over a longer period of time, the volatility is clear to see.

On April 27, Amazon stock rose suddenly, resulting in a spike at $109.82, before dropping back to $102.05 per share which is lower than its value five days previously, which was before said spike.

The period over the last two weeks may well appear to provide some excitement to Amazon investors, but it all started from a much lower point.

One month ago, Amazon stock was trading at less than $100 per share.

What is happening now?

The big picture shows a lot of up and down movement, with the past few days having shown this straighten out nicely.

Amazon knows its value when it comes to getting products in front of an audience. This is, after all, a global internet and data management giant whose other core business activity is product advertising and e-commerce. That is a perfect combination of retail and internet service business to make Amazon absolute masters in digital marketing.

Just over a week ago, Amazon announced that it is preparing to launch a new set of services for its advertisers, which span across a comprehensive range of digital channels at Amazon including Prime Video, Amazon Freevee, Fire TV, Twitch, Amazon Music, Wondery, Amazon Live, and Thursday Night Football.

These very detailed new advertising experiences within premium Amazon programming are set to become available to commercial advertisers in 2024, but their announcement last week sent a message that the company is looking to drive a vast increase in advertising revenue via various channels from 2024.

Amazon made a total of eight announcements at New York’s NewFronts annual digital advertising event in which media buyers are introduced to new content and advertising platforms by companies in the media and entertainment industries.

This may well be a long-term view, as these channels will go live next year, but their unveiling by Amazon is of interest given that selling advertising via various streaming channels is a core activity for the internet giant, especially bearing in mind its huge audience which would be attractive to all advertisers in all sectors.

Therefore it is possible that the price of Amazon stock may consistently rise during the course of the month ahead, building on its steady progress which began just at the time at which these new revenue-driving plans were announced.

Overall, shareholders in large, conservatively run multinational corporations whose stock is traded by a broad spectrum of investors ranging from private individuals with a small amount of stocks to large proprietary trading firms, wealth managers and family offices are not subject to sharp movements, hence its across-the-board popularity.

This is of course also done intentionally, as part of policy to ensure that its stock continues to appeal to such a broad spectrum and keep its appeal as wide as possible.

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