How Retail Investors are Reacting to a New AMZN Price Target and Prime Day

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How Retail Investors are Reacting to a New AMZN Price Target and Prime Day

Jack Dalton

8:36 AM

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A J.P. Morgan analyst just upgraded Amazon.com, Inc. (AMZN) stock. The analyst envisions a potential 56.6 upside for AMZN shares. AMZN stock has jumped nearly 0.7%, just based on this upgrade news.

Amazon.com, Inc. (NASDAQ: AMZN) has faced a challenging market environment in 2022 so far. However, a fresh upgrade from one J.P. Morgan analyst is spurring traders to send AMZN stock higher today.

Could analysts envision a 56.6% upside for the stock? Well, J.P. Morgan analysts did just upgrade Amazon.com, Inc. from “market perform” to “overweight.” In the world of finance, being “overweight” is great for one's financial health.

What does this Upgrade mean for AMZN Stock?

This upgrade couldn't have come at a better time for Amazon.com, Inc. as its investors have endured recent hardships. AMZN stock has been heading toward a crash landing over the past year and has fallen from a 52-week high of $188.11 to its current price of $110.63.

However, there is some good that has come from AMZN's poor recent performance. AMZN's recent adversity has resulted in a great opportunity for investors, as their financial ratios are more attractive now than they have previously been. These attractive ratios could have been an influencing factor in J.P. Morgan's decision to upgrade their outlook on the AMZN stock.

J.P. Morgan is foreseeing a “better risk/reward ratio” for the AMZN stock now than they have in previously. With that being said, J.P. Morgan raised his price target to $175, as they expect Amazon.com, Inc.'s market share to continue increasing.

If J.P. Morgan's predictions pan out it could mean more than just a 56.6% upside, as it could encourage further growth in for AMZN stock.

Effects of the Upgrade on AMZN's Social Sentiment

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

  • 614 Posts (down -21.98%)
  • 672 Likes (down -16.42%)
  • 2.47M Impressions (up 8.93%)

  • 1,430 Tweets (up 54.09%)
  • 353.31k Likes (up 1,678%)
  • 17.77M Impressions (up 10.04%)

As we can see, the recent J.P. Morgan analyst upgrade had a different effect on the social sentiment within both the AMZN Stocktwits and AMZN Twitter communities.

Firstly, the AMZN Stocktwits community had little to no reaction to this news, as their sentiment has not experienced any very large changes.

However, the AMZN Twitter community has experienced an overall increase in their sentiment, which may be due to this price increase. In order to find out if this is the case, we can look deeper into the content being posted on the AMZN Twitter Feed. This is not the case for the AMZN stock, as most of the recent tweets were discussing how successful Amazon's "Prime Day" was, and are excited to see how their "Prime Day" performance will affect the AMZN stock come next earnings.

Lastly, you may have noticed that the AMZN Twitter community is able to garner way more impressions than the AMZN Stocktwits community despite having relatively similar posting volumes (in comparison to the difference in impressions). 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. We will explore this topic further in the next section.

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

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):

  • 242 somewhat large Twitter accounts 10,000+ followers,
  • 48 large Twitter accounts with 100k+ followers
  • 4 very large accounts with 500k+ followers

To show you how much of an impact these large accounts can have on AMZN's Twitter impressions. I will show you the top 2 tweets from the largest accounts posting about $AMZN on Twitter. Firstly, Marketwatch tweeted this to their 4.3M Twitter followers, which we can assume reached a good portion of their followers (and most likely a lot of non-followers as well). Secondly, WatcherGuru tweeted this to their 1.2M followers, which again probably reached a good amount of them. Assuming these tweets just reached their followers, these 2 accounts would have brought in 5.5M AMZN impressions on Twitter, which is almost 33% of the total AMZN impressions on Twitter.

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.

Start Your Social Sentiment Research Journey Today

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Jack Dalton

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