- Summary:
- Amazon stock price has struggled in the last one month. What could change things ahead of and after its earnings release?
Amazon stock price was up in Friday’s premarket session as investors remained upbeat over its earnings call scheduled for October 31 . The e-commerce and cloud computing giant traded at $188.07, having gained 0.9 percent. The company’s earnings in the second quarter missed median forecasts, and a second successive underperformance could exacerbate its struggles in recent weeks.
What’s shaping Amazon stock price?
Amazon (NASDAQ: AMZN) has lost 5 percent of its value in the last month, signifying the downward-leaning momentum that will likely limit gains in the near-term. However, it is up by 22 percent year-to-date, which offers support and limits selling pressure. Amazon’s delivery service has truggled for growth, and that may not change much in the forthcoming earnings call.
Retail consumption has generally undrrperformed this year, and FedEx’s last qaurterly results offer a glimpse into what to expect. However, Amazon Web Services (AWS) has shown strong growth signals, and that could be central to keeping Amazon stock price on the ascending trajectory after next week’s earnings release.
Furthermore, investors will be keen on the company’s AI-related earnings, as that is central to its competitiveness against peers like Microsoft, Tesla and Apple. However, the company’s substantial expenditure in building its AI infrastructure could eat into its earnings figures, which could weigh down on AMZN price.
Amazon stock price forecast
Amazon stock price will head upward if the buyers keep the action above the pivot mark at 188.00. That will likely see the first resistance established at 188.00. However, if the momentum strengthens further, the stock could rise to test the second resistance at 189.50.
Conversely, the sellers will take control if the stock moves below 188.00. In that case, initial support could come at 186.95. However, if they extend that control, AMZN could break below that support. That would invalidate the upside narrative and potentially take the price lower to test the second support at 185.85.
