Amazon’s stock (AMZN) tumbled 4.2% on Monday, extending its recent decline amid growing concerns over slowing consumer spending.
At the close of Monday’s trading, Amazon’s stock settled at $194.70 and is currently trading at $195.12 in pre-market hours. This marks a significant drop from its recent highs above $230, confirming a downtrend in the stock as investor sentiment turns bearish.
Why Is Amazon Stock Dropping?
Amazon’s stock faces pressure as consumer spending weakens amid inflation and higher borrowing costs. Shoppers prioritise essential goods and budget-friendly alternatives, which is hurting Amazon’s core e-commerce business.
Additionally, AWS, its most profitable division, is seeing slower growth as corporate clients reduce cloud spending. Competition from Walmart and other retailers is intensifying, with rivals aggressively expanding same-day delivery, grocery services, and AI-driven logistics. Walmart’s e-commerce business is growing, taking market share from Amazon.
Amazon Stock Technical Analysis – Key Support and Resistance Levels
Amazon currently trades at $195.12 in pre-market hours, signaling continued volatility.
- Immediate Resistance: $200.37 – Amazon needs to clear this level for any bullish momentum to return.
- Key Resistance Above: $215.96 – A breakout above could indicate trend reversal.
Key Support Levels to Watch:
- $194.54 – The stock is hovering near this level; a breakdown could lead to more downside.
- $180.39 – A major support level; losing this could accelerate selling pressure.
- $170.89 – Critical support that could act as a potential bottom.
What’s Next for Amazon?
With consumer demand slowing and competition rising, Amazon faces a challenging period ahead. Investors should closely watch earnings reports, AWS performance, and inflation data to gauge whether Amazon can regain momentum.