After Thursday's close, another corporate giant reported fourth-quarter 2023 activity.
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).
Bloomberg names the reasons for success during the reporting period:
→ cost-cutting policy, which is persistently pursued by CEO Andy Jassy;
→ focus on services that bring in money. For example, advertising revenues have grown for the 4th consecutive period;
→ sales of cloud services grew by 13%, easing concerns about slowing demand;
→ strong sales growth during the holiday season.
The company also issued optimistic guidance for the coming quarter, with the expectation that corporate customers will increase spending in its cloud computing division.
As a result, AMZN's share price closed at USD 171.58 on Friday, up nearly 8% from Thursday's close.
The daily chart for AMZN stock today shows that:
→ the price moves within the ascending channel (shown in blue);
→ the price came close to its upper limit;
→ the RSI indicator indicates that the market is significantly overbought;
→ the price formed a bullish gap above the level of USD 160 per share.
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.
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.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.