Amazon Raises Louisiana Investment to $18 Billion, Adds Third Data Center Campus

Amazon.com Inc. shares edged higher on Tuesday, with consumer stocks showing resilience amid a broader market selloff. The Nasdaq fell 1.48%, and the S&P 500 declined 0.53%. Meanwhile, the consumer discretionary sector rose about 0.6%.

Amazon's relative strength stems from investors rotating into select consumer stocks. In contrast, technology shares fell 2.56%, marking the weakest-performing sector on Tuesday.

Additionally, eight of the 11 S&P 500 sectors advanced. However, the Dow Jones Industrial Average slipped 0.19%, and the Russell 2000 dropped 1.01%.

Amazon shares also remained near their 52-week high. As a result, buyers continued to support the stock during broader market weakness.

Amazon Increases Louisiana Investment to $18 Billion

Separately, Amazon announced on Tuesday that it is raising its planned investment in northwestern Louisiana from $12 billion to $18 billion. The expansion includes a third data center campus in Shreveport.

The three campuses are expected to create up to 750 full-time Amazon data center jobs and support 2,500 additional positions. Amazon also plans to invest up to $400 million in public water infrastructure.

Furthermore, the company said it will cover the costs of energy infrastructure and grid upgrades required for its data centers, shielding local customers from those expenses. Since 2010, Amazon has invested over $6 billion in Louisiana.

Amazon Technical Analysis

Amazon shares remain above key moving averages. The stock trades approximately 1.5% above its 20-day simple moving average of $257.80. It also sits about 10% above its 200-day simple moving average of $238.02.

Additionally, the 20-day simple moving average holds above the 50-day simple moving average. The 50-day simple moving average also crossed above the 200-day simple moving average in May, forming a bullish golden cross.

Meanwhile, Amazon's relative strength index stands at 52.91. This neutral reading indicates the stock is neither overbought nor oversold.

Traders may watch $287 as a resistance level. That level is near Amazon's 52-week high of $287.20. On the downside, $226 could act as support.

Analyst Outlook

The stock carries a Buy rating, with an average price target of $331.48 from 50 analysts. Recent analyst adjustments include:

UBS: Buy

Telsey Advisory Group: Outperform

Bernstein: Outperform

AMZN Price Action

As of Tuesday's close, Amazon shares rose 0.15% to $261.69.