Amazon: Record Earnings Are Priced In as the Trend Loses Momentum

Fundamental backdrop

In the first quarter of 2026, Amazon reported a 17% increase in net sales to $181.5 billion. AWS revenue grew by 28% — its fastest pace in 15 quarters — while operating margin reached a record 13.1%. These results provided a solid fundamental foundation for the rally in Amazon shares seen from February through early May.

Now that the positive impact of the quarterly earnings release has likely been fully priced in, the market appears to be shifting its focus towards second-quarter prospects. A key event for the period will be the annual Prime Day sales event, scheduled for June 2026.

Technical picture

Since 27 March, Amazon shares have posted a sharp advance, forming a short-term uptrend. The move was supported by an ascending trendline connecting the 200 area with the 278 region, where local resistance emerged. At present, the price is testing this trendline for a potential downside break and has already moved below the lower boundary of the profile located at 260, signalling weakening bullish structure.

The point of control (POC) is situated in the 263–264 area, close to the lower boundary of the profile. Should the stock attempt to recover, this boundary may become the first obstacle for buyers. The upper boundary of the profile at 273 may also attract market attention if the price returns to the range. Above it lies a resistance level near 278.

The RSI and its moving averages currently stand at 39, 45 and 49. All three readings remain below the 50 mark, indicating the development of a bearish phase and weakening upward momentum. The 248 area, where the green support level is located, remains the nearest downside target should the decline continue.

Key takeaways

Amazon shares have undergone a strong upward move supported by record financial results; however, the technical picture now points to a potential trend reversal. Further developments will largely depend on whether sellers can maintain control below the current volume profile.

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