Amazon Stock AMZN Fails at Key Resistance Despite Streaming Partnership
Amazon shares, which recently faced pressure after earnings, are showing renewed strength as a new streaming deal and growth initiatives...
Quick overview
- Amazon shares are rebounding after facing pressure post-earnings, aided by a new streaming deal and growth initiatives.
- The stock has shown technical recovery, bouncing off key moving averages and aiming to retest previous highs.
- A new distribution deal with Comcast will enhance Amazon's streaming offerings and strengthen its market presence.
- Despite aggressive expansion efforts, analysts remain cautious, indicating that investor confidence hinges on clearer earnings growth.
Live AMZN Chart
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Amazon shares, which recently faced pressure after earnings, are showing renewed strength as a new streaming deal and growth initiatives bolster sentiment.
Technical Recovery Back in Play
Earlier this month, Amazon.com Inc. (NASDAQ: AMZN) faced heavy selling pressure, but last Friday’s remarks by Fed Chair Jerome Powell helped spark a rebound. The stock bounced off the 50-day SMA (yellow) and, by yesterday, had pushed above the 20-day SMA (gray), opening the door to retest the July highs near $234 or potentially challenge the all-time high of $242.50.
Comcast Deal Adds Fresh Momentum
Today, Amazon shares rose another 1% following the announcement of a new distribution deal with Comcast’s NBCUniversal. The partnership will bring Peacock Premium Plus, the ad-free streaming tier, directly to Prime Video subscribers in the U.S. for $16.99 per month or $169.99 annually.
As part of the broader agreement, Peacock will be accessible through Amazon’s Fire TV platform, while Universal Pictures films will be available for rental or purchase via Prime Video. At the same time, Comcast’s Xfinity X1 devices will retain access to Amazon’s Prime Video service, creating a two-way distribution deal that strengthens the reach of both companies.
AMZN Chart Daily – The 50 SMA Held as Support
From Earnings Weakness to Persistent Investor Doubts
Amazon’s second-quarter earnings beat Wall Street forecasts but came with cautious forward guidance, which weighed on investor sentiment. Despite recovering much of its initial drop, AMZN remained under pressure in late July, falling around $25 and fueling a volatile trading stretch heading into August.
In an effort to regain confidence, Amazon rolled out an aggressive expansion of its grocery delivery network, targeting 2,300 cities by the end of 2025, with more than 1,000 offering same-day delivery. For Prime members, the company also scrapped its $9.99 monthly grocery delivery fee, replacing it with free same-day delivery for orders over $25.
Analysts Weigh In: Expansion vs. Earnings Clarity
While these moves signal Amazon’s determination to cement its dominance in both retail and streaming, analysts argue that the initiatives have not yet convinced investors. The logistical improvements and high-profile partnerships have not translated into sustained stock momentum, suggesting that traders are waiting for stronger evidence of earnings growth before re-rating the stock higher. For now, AMZN continues to walk the line between recovery potential and lingering uncertainty.
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