Amazon.com, Inc. (AMZN) is a multinational technology company that operates in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It is considered one of the Magnificent 7 companies, and, as with the Apple report last week, this analysis will focus on Amazon's performance relative to various benchmarks, including the broad S&P 100 and NASDAQ 100 indexes, the Roundhill Magnificent Seven ETF (MAGS), and other asset classes using SIA SMAX comparisons. The first table displays a relative strength matrix comparing the seven mega-cap stocks, along with the Roundhill Magnificent Seven ETF (MAGS), iShares S&P 100 ETF (OEF), and Invesco NASDAQ Trust (QQQ). Looking at the top of the list, NVIDIA continues to lead the group with a remarkable 187% year-to-date gain, while Tesla follows with a 29% YTD return. Although Tesla slipped early in 2024, a 46% rally in the past quarter has lifted shares to the #2 spot in the SIA Custom Mega Cap Matrix. Amazon ranks #6 with a 33% performance over the past year, still underperforming the Roundhill Magnificent Seven ETF's 51% return. However, Amazon has closed this gap with a 3-month performance of 14.09%, outpacing the MAGS ETF by 163 basis points (12.46%). The 1-month performance was nearly in line with the MAGS 7 average of just over 7%. This comparison becomes even more striking when considering the performance of the iShares S&P 100 ETF and Invesco QQQ Trust, which returned 1.47% and 1.17%, respectively, over the past month, or the YTD numbers of 28.01% and 21.79%. Analyzing performance from various angles, it becomes evident that Amazon is showing strong recent momentum, and when considering the rise in the SIA relative strength matrix, it is possible Amazon could be positioning itself to become a relative strength leader within the Magnificent Seven once again, as it did in 2023. Next, the first point-and-figure (P&F) chart compares Amazon's performance to that of the Roundhill Magnificent Seven ETF (MAGS) over the past 18 months. Amazon outperformed MAGS for much of 2023 but only began to underperform again in May 2024. While Amazon continues to underperform on the P&F chart, it is showing signs of sideways consolidation and will be watched for any reversal, spread double tops, or a move through the red negative trend line.
In the second point-and-figure chart, the SIA matrix position overlay tool is used to color code Amazon’s performance within the SIA S&P 100 Index Report. The underperformance period is highlighted by the red oval, where Amazon's price corrected from $180 to as low as $80 before buyers regained control. Shares quickly rebounded, moving into the yellow zone, then green, with brief periods of correction. Now, shares have broken through to new all-time highs, surpassing the psychological $200 barrier. Support levels are at $197.05 and $185.69, while resistance can be projected at $221.91 and $240.21, based on vertical counts of prior trading ranges and breakouts. The SMAX score, which compares Amazon to other asset classes, solidifies Amazon’s outperformance characteristics with a perfect 10/10 score.
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