AMZN Stock News: Amazon surges as JPMorgan names it top internet stock

NASDAQ: AMZN gained 6.5% during Monday’s trading session.
JP Morgan remains bullish on Amazon as its top internet stock.
Amazon held another Prime Day event to rid itself of overstocked items.

Amazon.com (AMZN) climbed higher to start the week as big tech stocks rallied, carrying the Nasdaq index to its best trading day since July. On Monday, shares of AMZN gained 6.5% and closed the trading session at a price of $113.79. Stocks surged out of the gate on Monday as better-than-expected bank earnings provided a much-needed boost to the major averages. The Dow Jones added 1.9%, the S&P 500 gained 2.7%, and the Nasdaq rose by 3.4% during the session.

Amazon stock price

Amazon received a positive note from JPMorgan after the investment bank named it their top internet stock. There are several things that JP Morgan finds appealing about Amazon including its rapidly expanding AWS Cloud Services segment and the company's decision to trim some of his spending in this difficult economic environment. It also forecasts that Amazon will continue to grow its margins and increase free cash flows, predicting it will be able to overcome ongoing macroeconomic issues by 2023. Amazon stock has had a tough year as it is down by more than 33% despite a 20-for-1 stock split that was expected to increase retail interest in the stock.

The company’s eCommerce side held another Prime Day event recently, and while the sales numbers paled in comparison to the event earlier this year, it managed to serve its purpose. Like rivals Target (TGT) and Walmart (WMT), Amazon has struggled with falling consumer demand and has a glut of overstocked items. The second Prime Day event was not meant to necessarily exceed sales figures but was more of a way to whittle down existing overstock.

AMZN 5-minute chart 10/17/22

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