Amazon.com Inc. (NASDAQ:AMZN) stock edged higher Tuesday as consumer stocks held up despite a broader market selloff. The Nasdaq fell 1.48%, while the S&P 500 lost 0.53%. Meanwhile, the Consumer Discretionary sector gained about 0.6%.
Amazon’s relative strength comes as investors rotate into select consumer stocks. In contrast, Technology stocks fell 2.56%, making the sector the market’s weakest group Tuesday.
Moreover, eight of the 11 S&P 500 sectors traded higher. However, the Dow fell 0.19%, while the Russell 2000 dropped 1.01%.
Amazon also remains near the upper half of its 52-week range. As a result, buyers have continued to support the stock during broader market weakness.
Amazon Ups Louisiana Investment to $18 Billion
Separately, Amazon said Tuesday it increased its planned investment in northwest Louisiana to $18 billion from $12 billion. The expansion includes 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 also plans to invest up to $400 million in public water infrastructure.
In addition, the company said it will cover the energy infrastructure and grid upgrades needed for its data centers, protecting local ratepayers from those costs. Since 2010, Amazon has invested more than $6 billion in Louisiana.
Amazon Technical Analysis
Amazon remains above key moving averages. The stock trades about 1.5% above its 20-day simple moving average of $257.80. It is also about 10% above its 200-day SMA of $238.02.
In addition, the 20-day SMA remains above the 50-day SMA. The 50-day SMA also crossed above the 200-day SMA in May, forming a bullish golden cross.
Meanwhile, Amazon’s relative strength index stands at 52.91. That neutral reading suggests the stock is neither overbought nor oversold.
Traders may watch $287 as resistance. That level sits near Amazon’s 52-week high of $287.20. On the downside, $226 could serve as support.
Analyst Outlook
The stock carries a Buy rating with an average price forecast of $331.48 (high: $400.00; low: $250.00) across 50 analysts. Recent analyst moves include:
- UBS: Buy (Raises Forecast to $318.00) (July 31)
- Telsey Advisory Group: Outperform (Raises Forecast to $335.00) (July 31)
- Bernstein: Outperform (Raises Forecast to $320.00) (July 31)
AMZN Price Action
Amazon shares were up 0.15% at $261.69 at the time of publication Tuesday, according to Benzinga Pro data.
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