The artificial intelligence boom continues to boost Amazon.com, laying the foundation for a fresh buy zone and new partnerships with Trip.com and Tesla rival BYD. Featured on IBD Leaderboard alongside fellow Magnificent Seven stocks Nvidia, Microsoft and Meta Platforms, AMZN stock trades near a 145.86 buy point.
Through its Amazon Bedrock platform, the e-commerce and cloud giant provides a fully managed service offering a choice of high-performing foundation models (FMs) from leading AI companies like AI21 Labs, Anthropic, Cohere, Meta and Stability AI.
Amazon Bedrock operates via a single application programming interface, or API. The system offers a broad set of capabilities to build generative AI applications with security, privacy and responsible AI.
The platform makes it easier for customers to build and scale generative AI applications customized to their businesses.
Amazon Takes To The Cloud With BYD
A direct competitor with Tesla, electric vehicle giant BYD is the world's leading manufacturer of new energy vehicles (NEV), including hybrid and battery electric vehicles. On Nov. 30, BYD selected Amazon's Amazon Web Services (AWS) as its preferred cloud provider for its connected vehicle platform worldwide.
Running its connected vehicle platform on AWS enables BYD to deliver automated updates to enhance vehicle safety, operation and the overall driving experience.
For example, these updates allow users of the BYD app to monitor battery charge and driving range. It can also unlock their doors and locate their car in a parking lot.
Amazon AI: Trip.com Gets Personal With AWS
On Nov. 30, Trip.com selected AWS as its strategic cloud provider to enhance the travel experience for travelers. The agreement taps AWS' global infrastructure and cloud technologies to expand its business internationally and drive innovation across the travel and hospitality industries.
Earlier this year, Trip.com established a joint innovation lab with AWS. The collaboration aims to develop next-generation applications using generative AI and large language models (LLMs).
The lab focuses on developing applications for critical business areas, including AI-driven customer service and hotel search optimization. The lab also works on forecasting flight ticket demand using generative AI technologies.
Amazon Stock Joins AI Leaders Nvidia, Meta, Microsoft
As the market indexes shake off resistance, the tech-heavy Nasdaq kicks off the week in strong fashion. The Magnificent Seven stocks continue to trade in or near their recent buy zones and their 21-day exponential moving averages.
Amazon stock is no exception. On Monday, the cloud giant slipped just below the 145.86-153.15 buy range it has flirted with since the middle of last month. But AMZN stock has come off the day's lows, rising to just shy of the initial entry. Amazon also bounced off its 21-day line.
Nvidia stock, Microsoft and Meta are all showing somewhat similar action. Meta stock fell at the open, but found support at its 50-day moving average as it now tests its 21-day benchmark.
During such pauses in top growth stocks, the relative strength line and volume offer important clues to monitor.
Relative Strenth Line A Good Indicator
The relative strength line for Amazon stock has moved sideways, with a mild downward trend on the weekly chart. To show resurgent market leadership, look for the RS line to shift higher.
As with their overall chart action, the relative strength lines for Nvidia, Microsoft and Meta show similar movement.
Trading volume provides another important clue as these Magnificent Seven stocks wade through the current market pause. Look for above-average volume to accompany any rise in share price for Amazon stock and the others to confirm demand for a new move.
And if the stocks fall further below recent buy zones and moving averages, see if trade turns heavy or light. Light volume on down days shows institutional investors are not selling aggressively.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
