Amazon.com, Inc appeared to be trading more than 94 percent lower in the premarket, but the new $125 price tag on the stock is due to a 20-1 stock split, which took effect on Monday after being announced in March.
The stock split prompted analysts to adjust their price targets on Amazon, with Morgan Stanley maintaining its Overweight rating and adjusting the price target to $175 and MKM Partners maintaining its Buy rating on the stock and adjusting the price target to $180.
Amazon’s adjusted share price makes investing in the stock more affordable for retail traders, and on Monday Amazon was shooting up almost 5 percent higher, which caused the stock to break up from a bull flag pattern on the daily chart….