Amazon Slides Below Support Level as Big Tech Weakness Continues

(Bloomberg) -- Shares of Amazon.com Inc. fell on Monday for the seventh time in the last nine sessions to finish under a key technical level for the first time in more than a month.

The e-commerce giant’s stock sank 1.7% to close at $3,341.58, its lowest level since Nov. 2, bringing the shares under their 200-day moving average for the first time since early November. The decline came amid a broadly negative session for U.S. equities, and after last week’s downturn in high-growth names that was triggered by the Federal Reserve’s hawkish pivot. Apple Inc. lost 0.8%, while Microsoft Corp. dropped 1.2% and Meta Platforms Inc. tumbled 2.5%.

With Monday’s decline, Amazon is now 9.6% below a closing peak hit last month. It also has lost more than 10% since its July record close. With a year-to-date increase of less than 3%, the stock is lagging megacap peers like Apple, Microsoft and Alphabet Inc., which have posted gains ranging from Apple’s advance of almost 30% to Alphabet’s rally of more than 60%. Both the Nasdaq 100 Index and the S&P 500 Index are up more than 20% in 2021.

Despite Amazon’s underperformance, the stock remains a consensus favorite on Wall Street. Nearly every firm tracked by Bloomberg rates it a buy, while the average price target points to an upside of more than 20%. Analysts are especially optimistic on its prospects in 2022, with Jefferies, Bank of America, and JPMorgan all recently naming it one of their top picks for next year, as Goldman Sachs did in November.

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