Amazon was down 8.8% pre-market due to weak guidance

Amazon stock fell over 8% after hours as forward Q3 guidance came in below analyst expectations. Revenue also fell short for Q2 with advertising revenue lacking. Cloud services was robust however overshadowing the negative revenue. Profit also beat expectations, despite this investors didn't seem to cheer on the stock after hours.

Looking at the chart the stock is still in an uptrend and analysts' targets remain at the $200-$225 region, YTD the stock is up 15% so this fall could provide a good buying opportunity. Toward the downside trendline resistance dating back to 2023 remains with support at $155-$157. A break below here would be a real blow for Amazon with further next support at around $145. On the upside, amazon has tough resistance at $200, which will act as a major barrier for the stock for the remainder of the year and might even cap its upside gains for now.

Despite this fall, the RSI does currently read 33 and if today's sell-off is worse this could put the stock in oversold territory for the first time since November 2022 prompting major buying.

Comment: "We do believe that there is value in Amazon between $155-$170 region as profit margins are now around growing in AWS and advertising. This consumer side is slower but this has been seen as an entire global issue and companies are spending on advertising and infrastructure to keep sales as high as possible, as revenue continues to grow this is giving Amazon an incredible position for profitability. Eventually, it would be great to see Amazon offer a dividend, which would probably be the catalyst for a move above $200 in 2025. Amazon doesn't want disgruntled investors to start selling the stock as the upside becomes further limited as growth slows down."