Amazon stock price consolidating as its row with Microsoft intensifies

Shares of Amazon (NASDAQ: AMZN) are trading mostly unchanged in December as the price action consolidates above the $3,000 handle. 

Fundamental analysis: Row with Microsoft over a $10 billion government contract intensifies

In a redacted October 23 court filing that was unsealed yesterday, Amazon stated a series of harsh criticism towards the Trump administration and Microsoft. In November 2019, Amazon’s cloud arm AWS lost to Microsoft in a battle to win the government’s Joint Enterprise Defense Infrastructure (JEDI) contract. 

The company says that the Department of Defense awarded a contract to Microsoft amid “extraordinary environment of corruption, interference, and retribution” by President Donald Trump and his administration.

Microsoft immediately hit back and urged Amazon to “move on” as the decision was made by “career procurement officials at the DoD,” who awarded the contract to Microsoft based on the “superior technical advantages and overall value”.

Technical analysis: Analysts raise PT

Despite the fact that Amazon stock price printed an all-time high in September and that it still trades near the top, analysts continue to raise their price target on the e-commerce giant. Cowen analyst John Blackledge lifted the price target on AMZN to $4,350.00, from prior $4,150.00, and included the stock in the “Best Ideas for 2021” list. 

In the meantime, the price action is consolidating within a symmetrical triangle as it created a series of the lower highs and higher lows. Therefore, the initial support comes just above the $3,000 mark for traders looking to buy AMZN shares, while overhead resistance lines are located at $3,185 and $3,380.

Summary

Amazon share price trades close to its recent record high as the battle with Trump administration and Microsoft over a $10 billion JEDI contract heats up.