Amazon Slumps Amid Short-Term Selling Pressure Despite Strong Earnings
Amazon's stock price slid by over 2% after a sharply lower open on Thursday, despite strong earnings momentum in its core business segments. The company reported a 20% year-over-year increase in Q2 net sales to $200.6 billion, driven mainly by AI infrastructure investments and accelerating growth in AWS.
The robust results were highlighted by a 26% increase in advertising revenue, supporting Amazon's overall corporate momentum and improved earnings quality. However, the stock remains under short-term selling pressure, trading below its 20-day moving average of $266.9 but above its 50-day and 200-day averages.
According to technical analysis, the nearest support level for Amazon is at $259.21, while resistance is capped at $266.88. Momentum indicators are mixed, with a strong buy signal from the MACD and a buy bias from the RSI and Stochastic RSI.