The shares of tech companies soared because investors believe the dividend representation could make it difficult for lawmakers to amend laws for online platforms. Joe Biden is leading in electoral polls but republicans secured more senate seats.
Amazon stock price rose almost 6% on Wednesday and the shares of the largest e-commerce company extended the upside momentum into Thursday trading. Amazon stock was under pressure in the past few weeks amid the broader tech-heavy index sell-off on concerns over a clear majority to Democrats.
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Amazon stock is likely to benefit from Black Friday sales
The pandemic darling Amazon stock is likely to benefit from Black Friday sales based on historical trends. For instance, the consumer discretionary sector surged more than 1% on average during Thanksgiving week, according to CNBC analyst.
The analyst also claims that the sector traded in positive territory 71% of times during the shortened weekend in the last thirty years.
The coronavirus spread is likely to change the shopping trend this year. This is because social distancing policies would enhance consumer’s focus toward online shopping platforms. Amazon is among the biggest beneficiary of consumer’s shift towards online shopping platforms. Last year, Amazon accounted for about half of online spending on Thanksgiving and the day after.
Analysts expect a significant upside ahead
The market analysts are of opinion that Amazon stock price is currently trading at discount due to the recent sell-off and strong financial outlook.
The company has generated 38% year over year revenue growth in the September quarter, with expectations that revenue will hit $120 billion for the first time in history in the December quarter. The median price target for Amazon shares stands around $3,800 while Street high price target is $4,500.