Amazon AMZN Stock Rebounds From Support on New Investment Plans and Global Deals
New alliances and plans for a billion-euro expansion are helping Amazon's (NASDAQ: AMZN) stock rise off significant support levels, even...
Quick overview
- Amazon's stock is rebounding from key support levels due to expansion plans and new partnerships, despite ongoing legal challenges.
- The company faces a lawsuit from the FTC over alleged deceptive practices related to Prime subscriptions, creating uncertainty in its outlook.
- Amazon is investing €1 billion in Belgium to enhance customer experience and support local businesses, while AWS is expanding in New Zealand with a focus on sustainability.
- Despite strong Q2 earnings, cautious guidance has tempered investor enthusiasm, leading to a wait-and-see approach for future growth.
Live AMZN Chart
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New alliances and plans for a billion-euro expansion are helping Amazon’s (NASDAQ: AMZN) stock rise off significant support levels, even as investor enthusiasm has been tempered by regulatory conflicts and a cautious outlook.
Legal Troubles Add Persistent Headwinds
One of Amazon’s biggest near-term challenges remains its legal fight with the U.S. Federal Trade Commission (FTC). Regulators allege the company deliberately steered millions of consumers into unwanted Prime subscriptions by using an allegedly confusing cancellation system dubbed the “Iliad Flow.”
The lawsuit, now underway in federal court in Seattle, accuses Amazon of knowingly making it difficult for customers to opt out. The case has injected a degree of uncertainty into Amazon’s outlook, acting as an overhang on sentiment at a time when the company is trying to re-establish bullish momentum.
Technical Rebound from Moving-Average Support
Amazon began the week under pressure, sliding around 1% amid broad weakness in tech stocks—an echo of the sector’s September selloff that followed Alibaba’s AI chip headlines. The decline drove AMZN below its 50-day simple moving average (SMA) before finding support at the 100-day SMA, where buyers stepped back in.
AMZN Chart Daily – The 100 SMA Held As Support
The rebound is being fueled in part by optimism over Amazon’s latest European investment plans. Shares are once again approaching their all-time highs, suggesting that the technical floor remains intact despite recent volatility.
€1 Billion Belgian Expansion Strengthens European Presence
Amazon announced a €1 billion investment in Belgium for 2025-2027 during a Belgian Economic Mission visit to the U.S. West Coast. The program aims to improve customer experience through competitive pricing, broader selection, and faster delivery—while also boosting opportunities for small Belgian businesses using the Amazon marketplace.
This sizeable commitment highlights Amazon’s continued focus on growth across Europe and reinforces its push to integrate e-commerce with local logistics networks.
AWS Growth Continues with New Zealand Push
In parallel, Amazon Web Services (AWS) is extending its Asia-Pacific footprint with a new region in New Zealand, backed by NZD 7.5 billion in funding. The initiative is expected to create over 1,000 jobs annually and add NZD 10.8 billion to GDP.
Crucially, the new AWS infrastructure will run on 100% renewable energy, demonstrating Amazon’s effort to balance aggressive expansion with sustainability goals while helping drive the region’s digital transformation.
Streaming Deals Broaden Prime Video Ecosystem
Amazon also deepened its media footprint with a new distribution deal with NBCUniversal. The agreement allows Prime Video members to access Peacock Premium Plus—the ad-free tier priced at $16.99 per month—and expands Universal Pictures titles in Amazon’s rental and purchase library.
The deal further integrates Prime Video with Fire TV devices and maintains availability on Comcast’s Xfinity X1, strengthening Amazon’s position in the competitive streaming market while broadening NBCUniversal’s reach.
Profits Impress, but Cautious Guidance Tempers Bulls
While Amazon’s Q2 earnings exceeded Wall Street expectations, management’s guarded forward guidance cooled some of the post-earnings enthusiasm. Since late July, AMZN shares have lost about $25 amid choppy trading, reflecting investor unease about slowing growth in parts of the business.
For now, strong long-term growth initiatives—from AWS to streaming to logistics—are helping offset the legal and macro headwinds. Still, many investors are waiting for clearer signs of sustainable earnings acceleration before committing to new highs.
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