While the majority of big tech continues to plunge on the stock market, Amazon stock (AMZN) has been surging in the past seven days. It had the best four-day performance in the past two years and was even trending to the best five-day stretch in seven years before taking a slight dip.
Most analysts agree that AMZN trending up is closely linked with an upcoming 1-20 stock split. The company announced the move back in March, and the split was approved last week. As a result, all Amazon shareholders will receive 19 additional shares on top of every share they own. The split became effective on Friday, while the adjusted basis trading is set to begin on June 6th.
AMZN is 28 percent down year to date. After going up as high as $3,696.06 in November, the stock plunged to $2,082,00 in late May. Since then, it has been steadily climbing to reach $2,510.22 on Thursday.
However, the stock split isn’t the only reason why investors are backing Amazon. According to J.P. Morgan analyst Doug Anmuth, there are several other factors that make AMZN a good investment.
“We continue to believe revenue growth should reaccelerate in 2H22 as [year-over-year comparisons] ease and AMZN gains greater penetration in grocery, CPG [consumer packaged goods], apparel and accessories, and furniture/appliances/ equipment,” Anmuth wrote in a note to clients.
