Amazon shares fall for a fourth straight session on Monday, Citi boosts price target on the stock, forecasts 275 million Amazon Prime subscribers in ten years

September 11, 2018 10:20 am

Citigroup reportedly revised up its price target on Amazon.com Inc (AMZN) to $2 250 from $2 100 previously, as the bank pointed out that Amazon Prime subscribers could reach 275 million by the year 2029, while the e-commerce giant could generate over $500 billion in annual Prime-related gross sales.

As of the end of 2017, Amazon had 101 million paid subscribers, while currently Amazon Prime is offered in 16 countries, including Canada, Germany, India and Japan.

Amazon shares closed lower for a fourth consecutive trading session on NASDAQ on Monday. The stock went down 0.67% ($13.06) to $1,939.01, after touching an intraday low at $1,931.52, or a price level not seen since August 28th ($1,928.82).

Shares of Amazon.com Inc have surged 65.80% so far in 2018 compared with a 7.61% gain for the underlying index, S&P 500 (SPX).

In 2017, Amazon’s stock rose 55.96%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

“We remain positive on Amazon shares and view Amazon’s large and growing global Prime member base as not only a source of recurring revenue but a key reason why brands and third-party sellers are increasingly relying on Amazon’s marketplace,” Citi analyst Mark May wrote in a client note, cited by CNBC.

“Prime members are growing 35 percent to 40 percent per annum. There are many benefits of having highly satisfied membership-based customers, but a simple metric is that most studies suggest Prime members spend twice as much as non-Prime members,” May also noted.

According to CNN Money, the 44 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $2,105.00, with a high estimate of $2,500.00 and a low estimate of $1,870.00. The median estimate represents an 8.56% upside compared to the closing price of $1,939.01 on September 10th.

The same media also reported that 40 out of 47 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 2 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Amazon stock are presented as follows:

R1 – $1,942.82
R2 – $1,946.62
R3 (Range Resistance – Sell) – $1,950.43
R4 (Long Breakout) – $1,961.85
R5 (Breakout Target 1) – $1,975.18
R6 (Breakout Target 2) – $1,980.69

S1 – $1,935.20
S2 – $1,931.40
S3 (Range Support – Buy) – $1,927.59
S4 (Short Breakout) – $1,916.17
S5 (Breakout Target 1) – $1,902.84
S6 (Breakout Target 2) – $1,897.33

By using the traditional method of calculation, the weekly levels of importance for Amazon.com Inc (AMZN) are presented as follows:

Central Pivot Point – $1,979.26
R1 – $2,023.31
R2 – $2,094.55
R3 – $2,138.60
R4 – $2,182.65

S1 – $1,908.02
S2 – $1,863.97
S3 – $1,792.73
S4 – $1,721.49

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