- Amazon reports a daily loss of 1.56%.
- Analysts expect revenue of $148.68 billion and earnings per share of $0.98.
- The company is betting on spending on infrastructure focused on artificial intelligence.
Amazon shares hit a daily high of $190.60, encountering aggressive sellers who drove the share price to a low of $183.94. Currently, Amazon shares are trading at $184.46, down 1.40% today.
Amazon’s revenue is focused on AWS and AI development
Amazon has outperformed market expectations for the past five consecutive quarters, driven primarily by cloud computing through its AWS service. Analysts expect the company’s capital expenditures (CAPEX) focused on building generative AI and cloud infrastructure to increase by 43% in the second quarter.
In its retail business, the company has been working on reducing costs, with the aim of making its supply chain and delivery network more efficient. Growth in this unit has slowed due to competition from new Chinese players, including Temu and TikTok Shop.
Technical levels on Amazon
Amazon stock has entered a correction phase after reaching an all-time high of $201.20 on July 8. The nearest resistance is located at $196.62 given the high of July 16. The first support is located at $173.87, the pivot point of May 31 that converges with the 23.6% Fibonacci retracement. This support is located at $165.75, the low of February 13.
Amazon daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
