- Rumors have emerged that Amazon is interested in acquiring Electronic Arts.
- Amazon did a largescale deal with Plug Power on Thursday.
- AMZN stock looks likely to trend lower.
It is an awfully good sign for stocks these days to appear in the same headlines as the almighty Amazon (AMZN). CEO Andy Jassy is making moves.
Plug Power (PLUG) saw its share price spike 9% to $30 on Thursday after news of a partnership with the king of online sales to supply liquid hydrogen made the rounds. The partnership calls for Plug Power to deliver 10,950 short tons of green hydrogen to Amazon starting in 2025. The project is part of Amazon's strategy to go carbon-neutral by 2040. Plug has already been in partnership with Amazon for some time as it has supplied the retailer with 15,000 hydrogen fuel cells for its forklifts since 2016.
“Landing a green hydrogen supply deal with a customer like Amazon validates our multi-year investment and strategic expansion into green hydrogen," said Plug CEO Andy Marsh. "We are excited to expand our relationship with Amazon in exploring the use of other hydrogen applications, such as fuel-cell electric trucks and fuel-cell power generation stations that could provide electricity to Amazon buildings and the deployment of electrolyzers in fulfillment centers.”
Electronic Arts (EA) stock is also rising 4.8% at the start of Friday's session after rumors began circulating that Amazon may be interested in purchasing the video game empire. Shares climbed as much as 14% in the premarket before the regular session took things down a notch as the reports have not been confirmed. Buying the videogame studio would put Amazon in direct competition with Microsoft (MSFT), who announced the acquisition of Activision Blizzard (ATVI) for $69 billion earlier this year. Electronic Arts is a similarly-sized company but has a $37 billion market cap at the moment. USA Today broke the news about the possible buyout but did not provide any rumoured price. The article said Walt Disney (DIS) and Apple (AAPL) were also interested.
Amazon stock forecast
Amazon stock has experienced a recent rollover in the Moving Average Convergence Divergence (MACD) indicator. Likewise, the 9-day moving average has broken below its 21-day counterpart. Both of these factor into AMZN stock looking like it will descend into a downtrend. The closest support level is $125. The FXStreet outlook will change if AMZN closes above the recent resistance level at $144. The long-term bearish price target is at $102.50, the site of multi-session support earlier this year. The long-term bull target is at $170.
AMZN 1-day chart
Plug Power stock forecast
PLUG stock has been in an uptrend like much of the market since May 12, but things really got going on July 28. Thursday's high of $31.56 produced a new range high above that of April 4. This makes us bullish on PLUG shares. $32.50 is the next resistance level to watch out for, but above that price sits $37 with the latter looking the part of a significant price target. On the downside, nearby support sits at $28 and $25.50.
PLUG daily chart
Electronic Arts stock forecast
EA stock is well off its 2022 low of $109.24. It is probably safe to buy Electronic Arts stock in the event that a price is offered for it in the next month since Friday's advance of less than 5% would not lead to much of a sell-off in the event no acquisition offer gets made formally. Where would a suitable price be for EA stock though? Shares have generally met with resistance around $148 to $150 over the past two years, so it would not seem as if a buyer would need to go much higher than that. A $160 price tag would give current buyers around an 18% profit, but of course this is just speculation.
EA weekly chart
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