$AMZN TOP 20
Added 2023-04-29 20:31:03 +0000 UTC$AMZN did not get the fan fare and big moves this week compared to the other big tech stocks, the CFO was very honest in the earnings call and said that AWS growth was slowing down, after recording exceptional growth numbers over the last few years. It's AWS service is a big earner for them, as their core business model has very tight margins, so AWS was filling the void and until last quarter, was keeping them in profit.
$AMZN is not going anywhere, they may have to pivot some core models and be open to new enterprises but they have the resources, the man power, the influence and ability to do that. I suspect AI and automation will continue to play a big part in their operations and this will lower costs and help margins....but I find it unlikely that any other player can come into $AMZNs market and move to their scale, for a long time, their Moat in this regard is very strong.
So What Now?
The price action rejected exactly at the red trend line, we spoke about $AMZN needing to get above the 200 Day and then next it would need to go above the red trend line to go into the bull case.....it rejected at both now and is just below the 200 Day MA. If the market moves higher next week, especially if $AAPL post a beat on earnings, this could help move everything up.
If $AMZN can hold above this red trend line then it is bullish, in spite of their concerns, it is still not extended as the other big tech stocks.
Another rejection of this trend line and the 200 Day MA, or $AAPL posts a surprising negative earnings, this will likely come down to the buy zone next.
I am a buyer in the buy zone.
