Amazon (AMZN) Shares Take a Sharp Downturn
According to the chart, Amazon (AMZN) shares slid to roughly $222 yesterday, having traded above $255 only at the beginning of the month.
The decline can be attributed to several influences, among them:
→ A downgrade from Rothschild & Co. Redburn, which shifted its rating to “Neutral”. The firm’s analysts question whether Amazon’s vast spending on artificial intelligence will yield returns as swiftly as its previous heavy investment in cloud computing.
→ Mounting pressure from the US Federal Trade Commission (FTC). A court date has now been set for February 2027 in a case alleging that Amazon engaged in anti-competitive behaviour and inflated prices for American households by more than $1bn.
Technical View on Amazon (AMZN)
Looking back at the chart from 3 November — when the share price briefly surged above $250 following a strong earnings release — we:
→ mapped an upward price channel based on AMZN’s recent swings (highlighted in blue);
→ suggested that the market’s first reaction to the report might have been excessively optimistic, noting the likelihood of a corrective pullback.
Yet the subsequent drop of over 13% from the November high appears too steep to classify as a simple correction; the price has now dipped below pre-report levels. It is plausible that the breakout above the psychologically significant $250 mark was used by major long-position holders to take profits, resulting in a decisive shift in sentiment.
In the short run, traders may still anticipate a bounce from the lower boundary of the channel. Further out, however, the risk of a bearish break cannot be dismissed — particularly if the news surrounding AI continues to darken. For now, the market’s attention is firmly on Nvidia’s (NVDA) earnings announcement.
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