AMZN Share Price Rises Nearly 8% after Report
<img src="https://images.unsplash.com/photo-1556382363-8967ad2b37f0?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3wxMTc3M3wwfDF8c2VhcmNofDV8fGFtYXpvbnxlbnwwfHx8fDE3MDcxMjIyNDZ8MA&ixlib=rb-4.0.3&q=80&w=2000" alt="AMZN Share Price Rises Nearly 8% after Report" /><p>After Thursday's close, another corporate giant reported fourth-quarter 2023 activity.</p><p>Amazon's actual numbers exceeded analysts' expectations. And while actual revenue (= USD 169.96 billion) was close to forecasts (expected = USD 169.92 billion), the reported earnings per share were a surprise (actual = USD 1.00, expected = USD 0.795).</p><p>Bloomberg names the reasons for success during the reporting period:<br>→ cost-cutting policy, which is persistently pursued by CEO Andy Jassy;<br>→ focus on services that bring in money. For example, advertising revenues have grown for the 4th consecutive period;<br>→ sales of cloud services grew by 13%, easing concerns about slowing demand;<br>→ strong sales growth during the holiday season.</p><p>The company also issued optimistic guidance for the coming quarter, with the expectation that corporate customers will increase spending in its cloud computing division.</p><p>As a result, AMZN's share price closed at USD 171.58 on Friday, up nearly 8% from Thursday's close.</p><figure><img src="https://fxopen.com/blog/en/content/images/2024/02/51–4-.png" alt="AMZN Share Price Rises Nearly 8% after Report" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2024/02/51–4-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2024/02/51–4-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2024/02/51–4-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2024/02/51–4-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>The daily chart for AMZN stock today shows that:<br>→ the price moves within the ascending channel (shown in blue);<br>→ the price came close to its upper limit;<br>→ the RSI indicator indicates that the market is significantly overbought;<br>→ the price formed a bullish gap above the level of USD 160 per share.</p><p>Taking into account the above, it is possible to assume that the AMZN share price is in a vulnerable position for a rollback from the upper boundary of the ascending channel, when the optimistic impressions from the publication of the report subside — in this case, the formation of divergence on the RSI indicator and a decline into the bullish gap area is possible.</p><p>Also note that AMZN is approaching USD 180 per share. This is the level at which Jeff Bezos sold his shares aggressively in 2021, followed by a market downturn. At the same time, according to annual corporate reporting, Bezos intends to sell about 50 million shares this year. So the $180 level could be an important resistance for 2024.</p>
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