Amazon Downgrades Price Targets

Davidson downgraded Amazon's rating on Friday, placing it at "Neutral" from "Buy."

This downgrade stems from Davidson's view that Amazon is losing ground in the cloud computing market.

The stock's price target was also lowered to $175.

Davidson also revealed that customers are shifting their focus from Amazon to Google and Microsoft due to the lack of a robust in-house AI lab, unlike companies like Meta, which has established a strong and formal partnership with OppoenAI.

Meanwhile, Amazon reported its first-quarter earnings, stating that it expects revenue of approximately $176 billion, representing growth of around 13%.

Technical Outlook for Amazon Stock

Amazon's stock is trading near $205 after breaking through strong buying levels on the daily timeframe. This could push the company down further in the long term to around $193.

As for buying levels, the $189 level is considered a strong support level. We might see a rebound and an upward move from this level if strong buy signals emerge. The $178 level is also important, representing strong support on the daily timeframe.