Amazon: Still Fighting With Its Resistance Level
- Despite Amazon's strong performance and investment in AI, I maintain a "Hold" rating due to high valuation multiples and technical resistance levels.
- Amazon's Q3/24 results show impressive growth with 11% revenue increase and 52.1% EPS growth, yet some segments are seeing decelerating growth rates.
- The broader market euphoria and Amazon's inability to break past resistance levels suggest caution, as sentiment may be a contra-indicator.
- While Amazon is a great business investing heavily in AI and robotics, current stock prices do not justify long-term investment given potential recession risks.
georgeclerk
My last article about Amazon.com, Inc. (NASDAQ:AMZN) was published in mid-August 2024 and, similar to my previous articles, I rated Amazon as a “Hold”. However, in line with the euphoric stock markets in the United States, Amazon rallied as well and increased
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