Amazon.com Inc. (AMZN) shares edged higher Tuesday, showing some resilience even as the broader market took a hit. The Nasdaq fell 1.48%, and the S&P 500 lost 0.53%, but the Consumer Discretionary sector managed to gain about 0.6%. That's where Amazon lives, and it seems investors are finding some comfort there.
Tech stocks, on the other hand, were the day's biggest losers, dropping 2.56%. Eight of the 11 S&P 500 sectors were actually in the green, but the Dow still slipped 0.19%, and the Russell 2000 fell 1.01%. Amazon's relative strength is notable, especially since the stock is hovering near the upper half of its 52-week range. Buyers have been stepping in during dips, which is a good sign.
Amazon Ups Louisiana Investment to $18 Billion
In separate news, Amazon announced Tuesday that it's boosting its planned investment in northwest Louisiana to $18 billion, up from the previous $12 billion. That's a hefty increase, and it comes with a third data center campus in Shreveport. The three campuses are expected to create up to 750 full-time Amazon data center jobs and support 2,500 additional positions. Amazon is also planning to invest up to $400 million in public water infrastructure.
But that's not all. The company says it will cover the energy infrastructure and grid upgrades needed for its data centers, which means local ratepayers won't have to foot the bill for those costs. Since 2010, Amazon has invested more than $6 billion in Louisiana, so this is a long-term commitment.
Amazon Technical Analysis
From a technical standpoint, Amazon is looking pretty solid. The stock is trading about 1.5% above its 20-day simple moving average of $257.80 and roughly 10% above its 200-day SMA of $238.02. The 20-day SMA is above the 50-day SMA, and the 50-day crossed above the 200-day back in May, forming a bullish golden cross. That's a classic signal that momentum is on the bulls' side.
The relative strength index (RSI) sits at 52.91, which is neutral territory. So the stock isn't overbought or oversold, leaving room for movement in either direction. Traders might be watching $287 as resistance, which is near the 52-week high of $287.20. On the downside, $226 could act as support.
Analyst Outlook
Wall Street is still pretty bullish on Amazon. The stock carries a Buy rating with an average price forecast of $331.48 across 50 analysts. The high estimate is $400.00, and the low is $250.00. Recent analyst moves include UBS raising its forecast to $318.00 on July 31, Telsey Advisory Group bumping its target to $335.00 the same day, and Bernstein lifting its price target to $320.00.
AMZN Price Action
At the time of publication Tuesday, Amazon shares were up 0.15% at $261.69, according to market data.
