Why Is Amazon Up 5%?

Why Is Amazon Up 5%?

Happy Friday folks! 

Investors had a lot to digest this week. Probes into U.S.-listed Chinese stocks from government officials, Amazon’s new CEO, and a continuation of the meme stock craze dominated headlines. Just remember though that these are all small hiccups in your journey to accumulate long-term wealth. Below we have the wider market reasoning behind the week’s stock movements, so take everything else with a pinch of salt.

If you’re looking for some advice on how to handle all this noise, check out our latest Daily Insight.

Here were the biggest movers in the MyWallSt shortlist this week:

Moving Up ⬆️

Amazon (AMZN) +5.3%

Coupa Software (COUP) +4.8%

Shopify (SHOP) +3.8%

DocuSign (DOCU) +3.6%

Apple (AAPL) +3.3%

Moving Down ⬇️

Lemonade (LMND) -9.9%

Eventbrite (EB) -8.6%

IMAX (IMAX) -7.9%

Wynn Resorts (WYNN) -7.1%

Stitch Fix (SFIX) -6.1%

What investors need to know 

Amazon (AMZN) +5.3%

Amazon shares hit all-time highs this week as Andy Jassy stepped into his role as CEO. On Jassy’s first day, the U.S. Department of Defense canceled its $10 billion JEDI contract with Microsoft and mentioned that it’s considering an agreement with Amazon Web Services (AWS). The contract was the subject of a legal dispute in which Amazon claimed that former President Donald Trump tried to stop the cloud giant from getting the deal. AWS is very successful, bringing in sales of $45.3 billion last year, but if it won a government deal, it would solidify its position as the leading cloud provider. 

DocuSign (DOCU) +3.6%

DocuSign is now ‘COVID and post-COVID’ proof as businesses realize that signing a document remotely will always be convenient. As lockdown restrictions lift globally, many offices are remaining closed whilst employees are pushing for permanent remote work or hybrid approaches, which has driven demand for DocuSign’s services. Shares have also risen 21% over the past month after the technology company posted strong Q1 results, with revenue up 58% YoY to $469 million. Also encouraging bullish sentiment over the stock is DocuSign’s estimation that its total addressable market for e-signatures is roughly $25 billion, suggesting there is still a large portion of the pie to claim. 

Apple (AAPL) +3.3%

It’s not often that you’ll see two Big Tech stocks in a week’s biggest movers — purely down to their sheer size. But Apple inched close to all-time highs this week in anticipation of its June quarter earnings report, as well as growing iPhone 13 excitement. The second generation of 5G capable iPhones is expected to be a big hit among consumers as COVID savings are spent and semiconductor chip shortages begin to alleviate. With catalysts such as these in the back half of 2021, it’s no wonder that Apple analysts are getting bullish on its stock right now.

Eventbrite (EB) -8.6% 

Analysts dropped some insights that suggested that Eventbrite will post average sales of $39.94 million for the current quarter due to a resurgence of COVID-19 cases. These estimates for the current quarter actually represent 376% growth YoY. However, considering that the same period last year was at the height of the pandemic, this comparison is not a good indicator as to whether Eventbrite’s growth is returning to pre-pandemic levels. With 52% of Americans already fully vaccinated and the UK lifting all restrictions, ticket sales should increase soon. 

Wynn Resorts (WYNN) -7.1% 

The increase in coronavirus cases is also having a negative impact on Wynn Resorts as shareholders become nervous about the new Delta variant. There have now been over 33 million COVID-19 cases in the U.S., and with rising numbers, the hotel and casino operator is being put under immense pressure. In some positive news, Wynn Resorts WynnBET recently announced a collaboration deal with major league baseball club — Colorado Rockies. The club will become Wynn’s sports betting partner giving the resort company the opportunity to host luxury hospitality events and activations at Rockies' home games. The move should boost revenue whilst introducing Wynn to more clients. 

NicoleNicole

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