Key Takeaways
- All eyes are on Amazon shares Reuters The company’s cloud computing division, AWS, is reportedly in talks to invest billions of euros to bolster its data center operations in Italy.
- The reported investment comes at the same time that AWS has committed billions of dollars in cloud investments to Spain and Germany as it expands its cloud computing services across Europe.
- If Amazon shares can break out of the key resistance near $188, the stock’s upward momentum is likely to continue, but if they fail to do so, a retest of support near $170 may be in order.
Amazon (AMZN) stock is in the spotlight Reuters Amazon reported on Monday that its cloud computing division, Amazon Web Services (AWS), is in talks with Italy about investing billions of euros to bolster its Italian data center operations as it continues its cloud expansion in Europe.
Discussions are ongoing regarding the size and location of the investment, according to people familiar with the matter, but one source said AWS plans to either expand its current operations in Milan or build a new facility there.
AWS, whose Italian clients include luxury sports-car maker Ferrari (RACE) and European insurance giant Assicurazioni Generali, established its first cloud region in Italy in 2020 as part of a broader plan to invest €2 billion ($2.17 billion) in the country by 2029. At the time, AWS said the investment would provide infrastructure to enable Italian companies to take advantage of advanced technologies such as analytics, artificial intelligence (AI), databases and the internet of things (IoT).
Elsewhere in Europe, AWS recently decided to invest €15.7 billion ($17.06 billion) in data center expansion in Spain and has committed €7.8 billion ($8.48 billion) in cloud investments in Germany. The cloud provider’s investment in Italy is expected to be in the billions of dollars, but may be smaller than its plans for Spain, the report said. Over the past year, AWS has stepped up efforts across Europe to win resource-intensive telecommunications customers, most recently inking a deal with Germany’s Telefonica Deutschland (TELDY).
Monitor this important level on the weekly chart
Turning to the weekly chart, Amazon shares have been on a steady upward trend since early January last year, with the uptrend confirmed in March this year when the 50-week moving average (MA) crossed above the 200-week moving average, forming a bullish golden cross signal.
Going forward, investors should keep a close eye on the $188 level, which has been a major resistance since mid-2021. A convincing, volume-supported breakout above this key level would likely continue the upside momentum, but failing that, a retest of support around $170 from a trendline stretching back to the January 2023 lows could be in order.
Amazon’s shares closed last week at $180.75.
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