Amazon (AMZN) stock dipped back below an entry point after the company gave lower-than-expected sales guidance with its fourth-quarter results last week. Still, shares of the tech behemoth are near highs amid a five-month rally.
Amazon’s overall gains in the past year have been powered by investor optimism about the company’s expansive e-commerce and cloud-computing operations. But as Amazon’s Q4 results highlighted, there are still ongoing investor debates for Amazon stock.
Analysts are scrutinizing the position of the Amazon Web Services’ cloud business in the battle for enterprise artificial intelligence spending against Microsoft (MSFT). Meanwhile, Amazon’s e-commerce dominance is facing challenges from Walmart (WMT) and China-based upstarts such as Temu and Shein. Investors are also debating whether the AI-powered rally for big tech stocks can keep up the pace into a third year, particularly after DeepSeek shook up the market.
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So is Amazon stock a buy? Here’s what to know about recent stock action and news for the tech giant:
Amazon Stock Dips Below Entry
Amazon stock traded a fraction lower on the stock market Tuesday, hovering near 232.60 in recent action.
Shares are trading just below a former 233 flat base buy point on its weekly chart, according to MarketSurge. Shares rallied past the entry on Jan. 24.
The stock is also finding support at its 21-day moving average with Tuesday’s action.
After a sluggish start to January, Amazon stock is up about 6% on the year as of Tuesday.
Meanwhile, Amazon’s Relative Strength Rating sits at 88 out a best-possible 99. That means Amazon has outperformed 88% of stocks in the IBD database over the past 12 months. IBD recommends focusing on stocks with at least an 80 RS Rating.
The IBD Stock Checkup tool shows Amazon stock holds an IBD Composite Rating of 96 out of a best-possible 99. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Investors also will want to check out IBD’s Big Picture column for the current market direction before considering any buy points. Here is a guide to understanding IBD’s rating system.
Amazon Q4 Earnings Beat; Guidance Disappoints
Amazon stock fell following Q4 results on Feb. 6, despite the tech giant’s results for the December period beating estimates.
Earnings increased 86% year-over-year to $1.86 per share, beating expectations. Sales grew a better-than-expected 10% to $187.8 billion.
But the company’s outlook for sales and operating income for the current quarter came in below expectations. The company said a strong dollar provided a headwind to its outlook.
Amazon Web Services sales, meanwhile, advanced 19% to $28.79 billion for Q4, just below views.
Chief Executive Andy Jassy said AI represents the biggest “technology shift and opportunity in business since the Internet.” Amazon will spend at least $100 billion this year on capital expenditures, with a focus of cloud AI capacity. But Jassy also cautioned that constraints on cloud capacity will make revenue growth “lumpy,” echoing comments by cloud rivals Microsoft and Google.
Amazon stock fell by 3% following the report.
Analysts See 15% Upside For Amazon Stock
The 30-year-old Amazon is among the world’s most valuable companies. It is a leader in e-commerce spending and in cloud computing through its Amazon Web Services business. It is also quickly growing its advertising business into a challenger to Google (GOOGL) and Meta (META). Amazon joined the blue-chip Dow Jones Industrial Average last year.
Wall Street analysts still see room to run for Amazon. Of the 72 stock analysts following Amazon, 94% have a buy rating, according to FactSet.
And despite the lower-than-expected Q1 outlook, Amazon’s average target price from analysts increased following the report. Analysts hold an average target price of 267.12, according to FactSet, implying roughly 15% upside from Amazon’s price as of Tuesday.
Pivotal Research Group analyst Jeffrey Wlodarczak reiterated a buy rating and maintained a 260 price target in a client note following Amazon’s earnings results.
“The shares have pulled back 4% in the aftermarket on the guidance and the fact that 2025 is likely an investment year, but we expect by (second-half 2025) this heavy capex investment and accelerating AI adoption ā which we believe will also accelerate the move to the cloud ā should begin to materially re-accelerate cloud revenue.”
Amazon Market Cap
You can check for Amazon’sĀ current stock price here. Amazon’s market cap was $2.44 trillion, as of Feb. 11. Here is how the stock has performed over time:
| Time Period | Amazon Stock % Gain | S&P 500 % Gain |
|---|---|---|
| Year-To-Date | 6.1 | 3.1 |
| Previous 12 Months | 33.4 | 20.6 |
| Three Year | 51.9 | 37.7 |
| Five Years | 116.5 | 80.5 |
| Since 1997 Amazon IPO | 249,966 | 605 |
*Prices as of Feb. 11
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