Eos Energy stock falls after Fuzzy Panda issues short report
- Amazon plans up to 30,000 layoffs to streamline operations and prepare for AI-driven growth.
- AWS performance remains the key focus as competition with Google and Microsoft intensifies.
- Stock stays stable but may remain range-bound between $239 and $211 per share.
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The main topic around Amazon.com (NASDAQ:AMZN) lately is its plan for large-scale layoffs. About 14,000 employees will be affected in the first phase, and the total number could reach 30,000.
These job cuts are part of a major restructuring but will likely have little impact on Amazon’s Q3 2025 results. The effects should start showing in the following quarters.
Analysts remain cautiously positive, though markets have often reacted negatively to Amazon’s recent earnings reports. The key area to watch will be the performance of Amazon Web Services, which competes with Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT).
Amazon’s stock has stayed steady since July and still has room to rise above its previous high of $242 per share.
Source: InvestingPro
Why Is Amazon Cutting Jobs?
Looking at Amazon’s current sales and financial position, the planned layoffs of up to 30,000 employees may seem unnecessary. But the company says it is reorganizing to prepare for a future shaped by artificial intelligence.
Those who lose their jobs will get priority for new roles that open up, along with strong severance packages and extra support. The move is expected to help improve profit margins in the coming quarters, though it remains uncertain how smoothly this major restructuring will unfold.
Investors will be closely watching Amazon Web Services’ sales and revenue growth as competition heats up in the AI solutions market. The unit will likely be compared with its biggest rivals, Microsoft’s Azure and Google Cloud. AWS is expected to post $32.4 billion in revenue for the quarter, an 18% increase from a year earlier.
Amazon’s Finances Remain Strong, but Stock Risks Staying in a Consolidation Phase
According to InvestingPro’s fair value index, Amazon’s stock may continue to trade within its current range, with only a small move expected from current levels. However, the company’s strong financial health rating highlights its solid fundamentals and stable position.
Source: InvestingPro
Even though Amazon has consistently beaten estimates on earnings and revenue this year, its stock has often fallen right after results. To see the share price move toward record highs in the near term, the company will need exceptionally strong numbers this time.
Amazon Technical Analysis
The recent rise in Amazon’s stock has renewed investor hopes for a move to new record highs. From a technical perspective, the key resistance levels are around $239 and $242 per share.
If the stock fails to break above this range, it may continue moving sideways between $239 and $211 per share, with key support near the lower end of that range.
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