SAN FRANCISCO - OCTOBER 11: Amazon logo on black shiny wall in San Francisco mall in California on October 11, 2015. Amazon is an American international electronic commerce company. It is the world's largest online retailer.
Amazon stock price suffers a brief pullback after being in an uptrend for two straight days. The stock of the e-commerce giant has been soaring since its Q3 earnings and is up more than 10% from last week’s close. The stock of Amazon opened Tuesday’s trading session in the red as Wall Street indices turned negative.
The Consumer Confidence index came at 102.6, which was 1.7 points less than the month prior. This suggests that pessimism persists among US consumers due to high grocery prices and gasoline prices. Consequently, the Nasdaq 100 index is down about 36 points at press time as investors await the FOMC statement tomorrow.
Last week, investors and analysts welcomed strong Q3 earnings reports by Amazon. The e-commerce giant earned $143.1 billion in revenue, up 13% from the year prior. Amazon also generated $9.9 billion in Net income which represented a whopping 240% growth from its Q3 2022 figure. Furthermore, the advertising department also reported a 26% increase in its revenue.
It seems Amazon might have to wait longer to get the green light to acquire iRobot as EU regulators extend the deadline for the decision to February 14, 2024. The EU Commission is performing a detailed investigation into the $1.4 billion acquisition deal after concerns regarding the anti-competitive practices were raised. Another legal headwind for Amazon stock price is the recent antitrust lawsuit filed by FTC.
A look at the chart of NASDAQ: AMZN shows the price facing slight resistance at the October highs. We can also see an upward trendline on the chart that the price has broken below since the end of September. This trendline might act as a resistance level if the price breaks above the October high of $133.
The Amazon stock price forecast might flip bullish if the price manages to break above the upward trendline again. However, there is a strong chance of a bearish intervention if the price is faces a rejection from this trendline. In this case, the bears might drag the price all the way down to retest of the $125 support level.
This post was last modified on Oct 31, 2023, 19:45 GMT 19:45