Can Analyst Upgrades Spur an AMZN Stock Rebound?

A JP Morgan analyst has recently set out a new Amazon (NASDAQ: AMZN) stock forecast of $185 per share, which implies a 37.09% upside for AMZN shares. The AMZN stock has increased by 0.1% since this upgrade was announced.

Does this Upgrade Signify More than Just a 37% Upside?

This upgrade came at a good time as the Amazon stock has fallen nearly 9% over the past 4-month period. However, over the past month, the AMZN stock has gained over 20% and seems to be bouncing back. Hopefully, this analyst upgrade can help fuel Amazon’s bounce back to the JP Morgan analysts’ price target of $185 per share.

The J.P. Morgan analyst is foreseeing a “better risk/reward ratio” for the AMZN stock now than they have previously. This could be due to AMZN having more attractive financial ratios and projections given their 4-Month performance.

Effects of the Upgrade on AMZN Stocktwits and Twitter Sentiments

Here are the latest analytics from the AMZN Stocktwits and AMZN Twitter communities (over the last 24hrs):

Stay Ahead of The Market By Tracking Real-Time AMZN Stock Trends

Firstly, it appears as though this upgrade had no effect on the Amazon Stocktwits sentiment, as their sentiment is down across the board. It is quite odd that the sentiment within the Amazon Stocktwits community has decreased by such a large amount over the past 24 hours, so let’s do some digging. I believe that this decrease in sentiment was due to the price action of the AMZN stock one day prior to the data shown above. The reason I think that this is the case is due to the fact that for the AMZN Stocktwits sentiment to drop by such a large amount, there needed to be a big event happening the day prior to this data collection. AMZN ran as much as 2% in the first 30 minutes of trading before dropping 3% throughout the rest of the day, which is sure to have drawn attention and gotten people to talk about it.

Conversely, it does not appear that there was much of a change to the senitment in the AMZN Twitter community, which is quite odd given the fact that the AMZN Stocktwits community experienced such a large decrease in sentiment. However, the AMZN Twitter community is much larger than the AMZN Stocktwits community, so it would be harder for the AMZN Twitter community to experience such a large decrease in their sentiment.

Lastly, the AMZN Twitter community is able to garner 11–12x more impressions than the AMZN Stocktwits community despite only receiving 5x more posts. This is due to the fact that there are more large Twitter accounts posting about the AMZN stock on Twitter than there are in the AMZN Stocktwits forum.

AMZN Twitter Accounts that Influence Social Sentiment

Here is a count of “whale” accounts that are active on AMZN Twitter (over the past 72 hrs):

  • 199 somewhat large Twitter accounts with 10,000+ followers
  • 22 large Twitter accounts with 100k+ followers
  • 2 very large accounts with 500k+ followers

These large accounts are able to garner massive amounts of impressions with just a single post and are the main reason why the AMZN Twitter sentiment is so much larger than that of the sentiment in the Amazon Stocktwits community. Furthermore, these large accounts are able to help sustain the sentiment in the AMZN Twitter community as long as they stay posting about the AMZN stock.

Whether you are trying to stay up-to-date on posting volumes, likes, and/or impressions within a stock’s Stocktwits and/or Twitter communities; diving deeper into the “whale” accounts that are driving sentiment in the AMZN Stocktwits and/or Twitter communities, or just keeping up with how different stocks are ranking in terms of their social sentiment; there is no better time to get familiar with social sentiment data.

The Leading Screener for Trending Stocks

Originally published at https://utradea.com.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Utradea

Utradea

15 Followers

The social platform for investment ideas and insights. Check out utradea.com for the latest investment content.