Amazon Stock Chart Analysis

by Jones David


Amazon’s CEOs and insiders sold $69 billion worth of shares this year. This total sale is 30% higher than 2020 and 79% up on Amazon’s 10-year average. While some investors see the selling as a warning sign, Amazon and other companies selling a large number of stocks continue to surge after the sale.

Even if Amazon is rapidly growing and seems to be a resilient business, the results for the past quarter decreased. However, investors focus on the long-term and consider the bigger picture of the Amazon (AMZN) stock chart

Amazon also had a rough third quarter. It was caused by labor shortages, higher employee costs, supply chain contrast, and increased costs of sold products. But even with an unsatisfactory third quarter, Amazon is still attractive for investors. Let’s investigate further.

What Makes Amazon Attractive for Investors?

Amazon remains a popular choice because of its:

Diversified Business

Amazon’s business operations and revenue-generating efforts include online stores, physical stores, third-party sellers, subscription services, cloud computing, and many others. Amazon’s diversified business makes it resilient. It also points out that it’ll be able to survive through the following years by spreading its sources of income.

Attractive Entry Point for 2022

Thanks to its high price-to-earnings ratio, Amazon remains one of the best businesses to be involved with for the following year. With its increased infrastructures and diversified sales-vectors, its earnings per share can increase significantly over the next three to five years.

Amazon’s Quarter Three

Amazon’s stock market shares for quarter three were disappointing for some investors. In their third quarterly 2021 report, their net sales increased to $110.8 billion (15%) compared to last year’s third quarter of $96.1 billion. However, this 15% increase is still behind the market expectation. 

In the same report, Amazon’s operating income decreased to $4.9 billion compared to last year’s $6.2 billion. Net income also decreased to $3.2 billion compared to last year’s $6.12 billion. Amazon’s CEO Andy Jassy explained the figures as the company choosing what’s best for their customer in the long term rather than optimizing for short-term revenue.

The company’s efforts to improve its customer service are seen by some investors as a good sign to invest in Amazon for the long term.

Amazon (AMZN) Stock Chart 2021

At the start of 2021, Amazon’s stock was at $3,280 and decreased below $3,000 by March. This marked investors’ buying momentum. 

By July 2021, the stocks hit a high of $3,773.08. However, this record-high momentum was short-lived as shares fell to $3,200. By December 2021, the shares opened at $3,523.

Amazon: Still a Top Stock to Buy

While Amazon faced a few road bumps in the third quarter this year, it is still one of the top companies on investors’ lists. Their new warehouses, sorting centers, and fulfillment centers aim to increase their sales and deliveries. However, the company also needs to increase its operating expenses and free cash flow with its added infrastructure.

While Amazon faces a supply chain crisis, they are more focused on the bigger picture. Additionally, most investors believe in the company’s ability to recover after a fall, especially with today’s broader market.

According to CNN Business’ stock price forecast for Amazon, in 42 analysts offering a twelve-month forecast, Amazon’s stock price can increase to a median of $4,000. It will also have a high estimate of $5,000 and a low estimate of $3,473. The current recommendation from analysts is to buy. 

Is Amazon a Good Choice for Short-Term Investors?

Despite the rough third quarter of Amazon, it is still one of the leading e-commerce marketplaces. It also maintained its market share legacy and gained market share in new markets.

Amazon’s performance is significantly more outstanding than its 2020 shares. However, its recent performance made short-term investors more cautious, especially if they intend to trade on short timeframes. 

There’s Still a Downside Risk

The e-commerce industry continues to grow hence the increase in competition. Walmart, eBay, and Target are known to match Amazon’s marketing strategy. The increase in competition can harm Amazon’s market share.

The Covid 19 pandemic contributed to Amazon’s growth due to lockdowns and quarantine protocols that prevented people from shopping outside. However, the online shopping trend can also reverse as more and more people have already adapted to the new normal and returned to shopping in physical stores.

The company’s spending to improve its business can also affect its market shares. The expenses can be significantly high, influencing the company’s dividend and revenue generation.


Amazon is undeniably one of the leading e-commerce giants. While its stock market price for 2021 isn’t what investors expected, many investors still look at it as a top company to invest in. These investors are looking forward to the company’s long-term performance in the stock market.

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