Amazon makes a comeback after stock split. But how long can it sustain the momentum? Inc. (NASDAQ:AMZN) traded up more than 6% on Thursday after announcing its fourth stock split since the 1997 IPO. The stock split, the first since 1999, will give its investors 20 units of shares for each they own. The company also announced a share buyback amounting to $10 billion.

The move to split the shares signaled to the market that Amazon was gearing itself to attract smaller investors. Similarly, the share repurchases signaled the company’s confidence in its own stock, a move that was bullish for the shares.

The jump in Amazon shares happened after a turbulent year in which its stock performed the poorest among the big tech firms in 2021. The stock has also fallen by 16% this year. Does the comeback mean that Amazon has already shed its woes and is now set for a long-lasting bull run?

Amazon faces immediate resistance at $3,000

Source: TradingView

Well, it would be accurate to state that Amazon’s stock split and share repurchase will boost the shares in the short and near term. At the current price of $2,942, the technical analysis points that the stock could rise up to $3,000 and $3,219, which is the next resistance in sight.

Thus, Amazon is a hold up to the resistance zone. Nonetheless, we already know that tech stocks, led by Amazon, have been hit hard by declining pandemic boosts and potential policy tightening by the Fed. The ongoing war in Ukraine is also dampening the sentiment. Consequently, Amazon could face resistance on its way to $3,219, making $3,000 the most realistic target in the short term.

Concluding thoughts

With the potential headwinds facing technology stocks and the ongoing crisis, Amazon is a hold up to the $3,000 level. If the situation improves, the stock could clear $3,000 and head to the next resistance at $3,219.

The post Amazon makes a comeback after stock split. But how long can it sustain the momentum? appeared first on Invezz.

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