Amazon stock (NASDAQ: AMZN) opened Tuesday’s bell at $208, and the equity remains under heavy selling pressure. The company is now embroiled in the Israel-Iran-US conflict as a drone strike hit its data centers in Bahrain and the United Arab Emirates (UAE). The development signals a next-gen of warfare where tech hubs would face the brunt, which directly affects the stock market and the company’s prospects.
The e-commerce giant published a press release confirming the drone strike. “These strikes have caused structural damage, disrupted power delivery to our own infrastructure. And in some cases required fire suppression activities that resulted in additional water damage,” read the release. The development now casts a shadow on Amazon stock’s prospects as its price is now close to the $200 phycological mark.
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Accumulate Amazon Stock If AMZN Falls Below the $200 Mark
Amazon stock is trading around the $208 range, and the $200 level isn’t just a random number; it’s a massive psychological line in the sand for Wall Street. The $200 billion AI infrastructure spending fears would ignite if AMZN falls below the psychological level. Retail investors would be the first to bear the brunt of the fall.
However, this is also a perfect buying opportunity as Amazon stock could be at its lowest point. This could be a path to make profits, as not every time an opportunity like this exists. If AMZN falls below $200 and trades at $190-$195 or slides to the $180 range, it is best to initiate dollar-cost-averaging (DCA).
Buy and accumulate Amazon stock at the dips between $195 to $190. If the downturn persists, accumulate further through DCA at $180. This allows room for decent profits when the prices bounce back and the market returns to normalcy. While other investors are scared to take entry positions, it’s best to begin buying AMZN then.
