Amazon stock price consolidating as its row with Microsoft intensifies
- Amazon calls the Department of Defense’s decision to award a JEDI contract to Microsoft “flawed”
- The Trump administration created “an increasingly corrupt environment,” Amazon states
- Microsoft immediately hit back and urged Amazon to “move on”
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.
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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.
“Since DoD commenced its corrective action, President Trump and his Administration have intensified a campaign of interference and retribution against those in DoD perceived as disloyal to the President or capable of reaching conclusions at odds with his personal interests,” the court filing says.
“President Trump’s campaign against an award of the JEDI Contract to AWS had its intended effect. Under overt and escalating pressure from President Trump, DoD departed from procurement rules to reject AWS’s superior proposal. DoD’s errors produced the flawed October 2019 award to Microsoft that was the subject of this Court’s prior review.
“Faced with the Court’s February 2020 ruling that AWS was likely to succeed on the merits, DoD undertook corrective action amidst an increasingly corrupt environment in which President Trump has made clear that anyone in the federal government who does not do his bidding will face the most severe career reprisals.”
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.
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.