Amazon revealed a new investment in Beta Technologies, a maker of electric aircrafts and propulsion. The stock rose on Wednesday, after the announcement was made late on Tuesday.
Multiple outlets cite a Securities and Exchange Commission (SEC) filing that the company owned 11.75 million Betas, or 5.3% of its total shares.
The beta shares gained in the after-hours market and continued to gain gains on the following day.
According to Benzinga’s report, Amazon made its position known in a 13G document filed after the markets closed on Tuesday.
According to Benzinga Pro, Beta Technologies Inc. shares (NYSE:BETA), were trading at $19.02 on Wednesday.
Amazon revealed
Amazon.com Inc. disclosed the change in position by filing its 13G quarterly report with the SEC detailing the purchase of 11,75 million BETA Shares during Q4.
This filing shows a 5,3% stake in Beta Technologies. A manufacturer specializing in electric aircraft technology and propulsion.
The market’s reaction
Beta’s shares rose on disclosure, but remain weak technically.
Benzinga’s snapshot of technical data shows that the share price is 17.1% lower than the 20-day moving average. It’s also 29.4% less than the 50-day, and the performance over the past 12 months has been down by 48.07%. The stock price is now closer to the 52-week highs rather the lows.
The MACD line is under its signal line and below the relative strength indicator, which indicates ongoing pressure.
Support is at $15.50, and resistance is at $22.50.
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Beta Technologies will report its earnings in 2026 on February 23. Benzinga’s consensus estimate is for a loss in EPS of 49 cents, on revenue of $7.39million.
Benzinga cites analyst sentiment that shows a Buy with an average target price of $38.13. Recent actions include
- Jeffreys Upgraded to buy, with a target price of $30.00 (Feb. 11, 2019)
- Needham: buy, targets $34.00 for the time being (Jan. 15, 2019)
- BofA Securities: Buy; target price raised to $37.00 by December 17, 2025
What it means
Amazon’s stake in Beta Technologies brings new attention at a moment when Beta Technologies stock is under pressure.
While technical indicators continue to reflect a difficult trend, the investment revealed in the SEC filing has been a catalyst on a short term for the price of the shares.
Investors will watch to see if the momentum created by Amazon can be built on in future results.
Stocks could change as new information is revealed.
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