Shares of Amazon.com, Inc. (NASDAQ:AMZN) are falling on Wednesday. The stock appears to be down following reports of a potential deal between Google and Anthropic.
- AMZN stock is trending lower. Get the scoop here.
What To Know: Bloomberg reported that Google is in discussions regarding a cloud deal with Anthropic, an AI development company backed by both Google and Amazon.
The potential multibillion-dollar deal would allow Anthropic to use Google's tensor processing units (TPUs), which are designed to accelerate machine learning workloads.
Google and Amazon provide cloud services to Anthropic and maintain large investments in the company. Google shares jumped on the news, while Amazon shares immediately moved lower, according to Benzinga Pro.
News of the potential deal surfaced a day after Amazon Web Services experienced a widespread outage that sparked errors and latency across several cloud services endpoints, disrupting services from companies including Snapchat, United Airlines and crypto exchange Coinbase.
According to DownDetector, thousands of users also reported issues with apps like Venmo and Instagram. Amazon told CNN the outage was caused by the company’s Elastic Compute Cloud network, which essentially allows businesses to rent access to servers and computing power.
AMZN Analysis: Amazon stock is trading approximately 3.1% below its 50-day moving average of $225.42, indicating a short-term bearish sentiment. The stock is also trading approximately 1.9% above its 200-day moving average of $214.24, suggesting that while there is some long-term support, the recent price action reflects a struggle to maintain upward momentum.
The calculated support level is at $216.03, which aligns closely with the 200-day moving average, providing a significant area for potential buying interest. Conversely, resistance is identified at $224.20, a level that has proven challenging for the stock to surpass in recent sessions.
AMZN Price Action: Amazon shares were down 1.10% at $219.61 at the time of publication on Wednesday. The stock is trading within its 52-week range of $161.38 to $242.52.
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