Remember when shares of Amazon.com (AMZN) used to be volatile? It used to be that if you wanted to try and catch a big move in a stock over a short period of time, shares of Amazon.com (AMZN) were a go to name. Over the years, fortunes have been made and lost in short periods of time by traders going long or short AMZN stock. When it first came public, it wasn’t uncommon for AMZN to trade in a 100% range over a two-week period. Even ten years after AMZN IPO’d, its average ten trading day range was just under 15%. That’s practically unheard of for a large cap stock! Just like a hyper puppy eventually turns into a lazy dog, though, AMZN’s stock has really entered a period of decreased volatility.
The chart below shows the rolling ten trading day range in AMZN’s share price from the time it came public up until now. We have also included red dots to show each time the ten trading day range dropped below 5%. In AMZN’s first decade as a public company, there were only three clusters of time where the stock traded in a sub-5% trading range and that accounted for just 1% of all trading days. In the company’s second decade as a public company, however, the frequency of sub 5% readings in the stock’s ten trading day range has increased ten-fold to more than 11% off all occurrences. More recently, AMZN has become even less volatile. Last August, the stock traded in its narrowest two-week trading range on record (1.92%), and just this week traded in its second narrowest range ever to 1.93%. Additionally, provided the stock doesn’t trade above $859.80 or below $843.75 between now and Monday’s close, this will go down as AMZN’s narrowest ten trading range on record.