E-commerce and streaming giant Amazon.com gained 3.5% Monday and is closing in on a buy point. Amazon stock is considered part of the elite Magnificent 7.
Amazon stock closed at its highest since Aug. 16, 2022. The stock has gained over 69% this year so far to outpace the Nasdaq's 32% increase and S&P 500's 16% gain. The stock exhibits possibly the best chart of the Magnificent 7.
Amazon Stock Nears Buy Point
The stock closed pennies away from hitting the 143.63 buy point of a flat base Monday. The entry point also marks its 52-week high reached on Aug. 4, the day after Amazon's earnings release.
Shares popped 8.3% that day after the company reported better-than-expected second-quarter earnings and sales. Amazon stock quickly trended downward and tested the 50-day moving average several times, but found support each time. That support offering an entry around 133.38.
The relative strength line hit a new 52-week high Monday, as shown by the blue dot on the MarketSmith weekly chart.
Amazon is expanding products and services that use Amazon Web Services (AWS) generative-artificial intelligence (AI) technologies.
David J. Kostin, chief U.S. equity strategist at Goldman Sachs, included Amazon in a handful of tech companies that were "near-term beneficiaries" of AI. He also sees potential for Amazon to add 39% to its long-term earnings from the AI business.
Amazon announced on Sept. 5 that BMW Group chose AWS for its preferred cloud provider for its advanced driver assistance system.
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