Two reasons to buy Amazon
Amazon has made two important announces: its famous annual sale Prime Day and the new cloud streaming service Luna.
What happened?
This event is also called Amazon's version of Christmas in the summer, as it takes place once in a year and becomes some sort of a celebration for its Prime members. Amazon offers enormous discounts, which usually outraces even Black Friday, from October 13 to October 14. As a rule, these two days of discounts greatly boost sales. Why does the company with record revenue of $88.9 billion in the second quarter need it? It turned out the retail giant wants to test its logistics and warehousing facilities ahead of the New Year’s shopping season.
Elsewhere, Amazon claimed its invasion into the video game streaming industry. The company unveiled its cloud streaming platform Luna, which allows playing games without the console or necessity to buy physical games. A fee is just $5.99 a month. Amazon is planning to merge Luna with Twitch to generate the mammoth subscription and advertising service.
What does it mean?
The video games industry is rapidly developing. Therefore, most companies want to get a larger piece of the pie. They are fighting for every dollar. As a result, the cut-throat competition is beneficial for customers as they get better quality at lower prices.
Most analysts foresee that two significant news will drive the stock higher, while Prime Day will add tailwinds in the short term, whereas its development in the streaming industry will remain a long-term driver. Let’s look at the chart.
Technical tips
Amazon is just under $3 100. If it manages to jump above this key level, the way towards the 50-day moving average at $3 175 will be open. It may meet some resistance near that area, but if it crosses it, it may surge to $3 250. Support levels are $3 000 and $2 900.
Follow further stock news as they create market volatility!
What should you do for trading Amazon?
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