AMZN, NFLX and AAPL Forecasts – Big Three Sluggish Ahead of Fed

AMZN Technical Analysis

Amazon looks like it’s going to be a little bit soft at the open on Wednesday, but we do have the Federal Reserve interest rate decision later in the day, so it is possible some people were just going to be exiting the market. We have been consolidating for a little while and it is outperforming the broader tech sector after they announced Prime Video Ultra, a new premium ad-free tier priced at $4.99 a month and the expansion of its 1-to-3-hour delivery service to 2000 cities.

Markets are rewarding the focus on margin expansion, but on Wednesday, I would expect a little bit of a pullback before we see buyers jumping in to take advantage of cheap stocks.

As long as we can stay above the 50-day EMA, though, I think it is more or less a buy on the dip type of scenario.

NFLX Technical Analysis

Netflix is just below where it closed in the previous session, as it is under slight pressure as investors weigh the cost of its aggressive acquisition strategy and increased production spending against its high forward P/E ratio of 37. The company still remains a cash cow, but the market is currently rotating towards asset-heavy tech or AI infrastructure plays so that could be part of what is dragging Netflix over the last couple of days.

As long as we can stay above the 50-day EMA though I think it is more or less a buy on the dip type of scenario.

Analysts are currently pricing in the impact of 145% tariffs on Chinese imports from the start which directly threatens iPhone margins given that 90% of assembly still happens in China.

AAPL Technical Analysis

Apple looks like it’s going to be just a touch lower at the open, but it is showing resilience despite the fact that there are significant supply chain concerns. Analysts are currently pricing in the impact of 145% tariffs on Chinese imports from the start, which directly threatens iPhone margins, given that 90% of assembly still happens in China.

Momentum has cooled as stock trades near its intrinsic value of 275 with the market looking for more clarity on its AI integrated services rollout. Right now, we are bouncing around the 200-day EMA, and I think this is a market that you’re looking for signs of momentum to follow. I wouldn’t read too much into the pre-market sluggishness, as it probably has more to do with the Federal Reserve than anything else.