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Amazon Stock Price Analysis: Will Black Friday Sales Drive AMZN Higher?

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Lilly Mwogah Fact check, Reviewer
    Summary:
  • Amazon stock gains momentum ahead of Black Friday 2024. Will holiday sales and Q3 earnings drive AMZN past $215?

Amazon.com Inc. (NASDAQ: AMZN) is grabbing headlines as we approach Black Friday 2024. This annual shopping extravaganza, set for November 24th, is one of the most crucial times of the year for the retail giant. With its stock already gaining momentum, many are wondering if this holiday season will push Amazon to even greater heights.

Black Friday Buzz and Revenue Expectations

Black Friday has consistently been a key source of income for Amazon, and this year is no exception. Consumers are preparing for significant discounts on a wide range of items, including electronics and fashion, and Amazon is going all out with AI-driven suggestions and quicker shipping choices. These advancements are intended to maintain the company’s lead over rivals while guaranteeing a smooth customer experience.

Analysts have a positive outlook, foreseeing potential for Amazon to make billions in revenue over the holiday season. If these predictions are accurate, it could greatly increase the stock’s value in the weeks ahead.

Amazon Technical Analysis

Amazon’s daily chart shows strong bullish momentum, with the stock trading at $204.61, up 1.44% in the latest session. Key technical levels to watch include:

  • Resistance: The next major resistance lies at $215.88, a level that aligns with August’s highs.
  • Support: On the downside, $200.06 and $195.55 serve as immediate support zones, bolstered by the 20-day EMA at $200.90.
Amazon Daily Chart Analysis

What’s Driving Investor Sentiment?

Beyond Black Friday, Amazon’s Q3 earnings have reignited optimism. The company posted a 13% year-over-year revenue increase, driven by growth in its AWS cloud segment and steady gains in advertising. These factors, coupled with aggressive cost-cutting measures, are paving the way for improved profitability.

The Outlook for Amazon Stock

As the Black Friday shopping frenzy nears, Amazon is perfectly positioned to capitalize on holiday spending trends. With technical indicators signaling bullish momentum and its business fundamentals strengthening, the stock has the potential to extend its rally. However, a failure to meet holiday sales expectations could dampen short-term momentum.

Investors will be keenly watching Amazon’s performance over the coming days, as the company’s ability to deliver record-breaking sales during Black Friday could be a decisive factor in the stock’s trajectory.