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Amazon (NASDAQ: AMZN) share price has caught some headwinds as the trillion-dollar company saw a 2.7% decline on Thursday. Earlier in August, the stock price made a new yearly high after presenting strong Q2 results before suffering a 7% correction. Amazon stock closed its last trading session at $131.84.
The US equities started to plunge ahead of the Jackson Hole meeting. The bearish sentiment in the US stock market continued on Thursday as traders took positions anticipating a hawkish speech from the Fed Chair. The Federal Reserve is expected to either increase or keep rates high longer to counter inflation.
Amazon To Buy Streaming Rights For ESPN
It has been reported that Amazon is in early discussions with Walt Disney regarding the partnership to stream ESPN. The sports channel will likely be streamed on Amazon’s various streaming services. Amazon might also be interested in buying a stake in ESPN. If this deal goes ahead, it will push the demand for the e-commerce company’s streaming services. This, in turn, would have a positive effect on Amazon share price.
In other news, Analyst Thomas Champion raised the price target for Amazon by 37%, from $175 to $185. The analyst cited the improved efficiency in shipping and fulfillment costs, the improvement in gross margins, and operating income in Q2 as the reason for the upgrade. The firm maintained its “Overweight” rating for Amazon stock.
Amazon Share Price May Slide To $126 Support Level
According to the latest analysis for NASDAQ: AMZN, the price has suffered a 3.2% correction even before retesting my key resistance level of $146. If the bearish pressure persists, Amazon share price forecast of $126 could be met soon.
Therefore, if the bears gain momentum, a further 4% correction can be expected from $131.84 all the way to $126. For the bulls to avoid this outlook, the price must reclaim the $146 resistance level.
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