Amazon (NAS100:AMZN) shares are in focus this week as the company reports its latest earnings.
AMZN – Daily Chart
The price of AMZN is in a precarious place for risk/reward as the uptrend support is very close, with little upside to possible resistance at the February highs.
Amazon’s founder, Jeff Bezos, has sold another 6.6 million shares in the company as its stock price continues to rise. According to recent data from the U.S. Securities and Exchange Commission (SEC), those shares were valued at around $1.5 billion. The transactions took place on July 21 and 22, just a week ahead of Amazon’s second-quarter earnings on July 31. These types of sales are done under a prearranged trading plan known as Rule 10b5-1, but the founder’s activity has increased recently.
Bezos still holds around 4.6 million shares of Amazon, valued at $1 billion, after setting up a plan to sell up to 25 million shares by May 29, 2026. Some reports had said that he was going to use the proceeds to buy CBS media and add it to his Washington Post holdings.
Analysts are concerned about Amazon’s performance due to tariffs because they have issues with companies based in China. Those merchants sell products through Amazon in the U.S,. but will do the manufacturing in China. That could be a drag for the company in the most recent quarter as it aims to find catalysts for the high stock price.
BofA analysts still see strength in Amazon’s retail business ahead of earnings. While the AWS segment continues to dominate headlines, analysts are also seeing the broader e-commerce ecosystem and the strength of digital advertising and devices. The investment bank’s analysts believe Amazon’s customer-first strategy will continue to pay off, especially as macroeconomic issues stabilise. BofA also expects AWS growth to continue accelerating into the year-end, driven by the cloud and retail segments.
However, the fact that the founder is getting out of the stock is a concern ahead of the latest earnings cycle, with the stock trading near all-time highs.
