Amazon In Free Fall Since Opening Bell

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Amazon.com, Inc. AMZN shares are trading higher by $57 at $539.18 in Friday's session. That is the good news; the bad news is the issue way off its high of the day that was made off the open at $580.57. In pre-market trading the issue went as high as $591.45. The catalyst for the huge rally is a solid Q2 beat for EPS ($0.19 vs. Est ($0.14)) with better than expected revenue ($23.18 billion vs. Est. $22.39 billion). In addition, the company raised Q3 sales guidance from $23.3 billion to $25.5 billion (from Est. $23.98 billion). Six Wall Street analysts sharply raised their price targets in the $412 to $575 range, all the way to the $646 to $740 range. Friday's price action is taking place on much higher than average volume. So far, 17.5 million shares have changed hands compared to its 20 day average of 4.1 million.