Amazon stock had to shake off a summer slump but managed to rally 45% in 2024. But the stock is down slightly early in 2025 and coming up against a test of a key level as a broader rally for stocks has slowed.
Amazon's overall gains last year were powered by investor optimism about the company's expansive e-commerce and cloud-computing operations. An earnings report expected soon will test progress on both fronts.
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. Meanwhile, Amazon's e-commerce dominance is facing challenges from Walmart and China-based upstarts such as Temu and Shein. And investors are debating whether the AI-powered rally for big tech stocks can keep up the pace into a third year.
So is Amazon stock a buy? Here's what to know about recent stock action and news for the tech giant:
Amazon Stock Near 50-Day Line
Amazon stock was a fraction higher near 217.44 in recent premarket action on the stock market Monday. Shares fell 1.4% Friday as tech stock fells on a strong jobs report that lowered expectations for further rate cuts.
Amazon stock has pulled back from a 233 record high on Dec. 16. The election of President Donald Trump to a second term powered Amazon stock to break out above a 201.20 consolidation pattern in early November, according to MarketSurge. But the rally faded late last month.
In early action this year, Amazon stock is struggling for traction. Shares are a fraction lower overall in January. Amazon stock fell below its 21-day trading average last week after hovering around the short-term investor support level at the start of the year. Shares, however, remain above Amazon stock's 50-day moving average and extended above a 5% buy zone from the 201.20 consolidation pattern entry, according to MarketSurge.
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.
Meanwhile, Amazon's Relative Strength Rating sits at 87 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 98 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.
Tricky Path For Tech Stocks
Amazon stock topped several top picks lists for 2025, including from analysts at Evercore ISI, TD Cowen and Truist Securities.
But with a recent run of hotter-than-expected inflation data and growing doubts about future rate cuts, tech stocks overall face a trickier path in 2025.
"The Street has seen a clear risk-off environment for tech stocks to kick off the year," wrote Wedbush analyst Dan Ives in a client note Monday. "After a historical two-year bull market for tech stocks led by the AI Revolution we are now entering a tricky time for the tech sector as the bond market and yields take back the narrative (for now) with concern about tech valuations playing out in this choppy Fed backdrop."
Ives added that he remains bullish overall. He expects the upcoming round of tech earnings with bring the larger opportunities from AI into focus.
"The tech basket approach to AI is the right way to navigate this current climate with a diversified group of chip, software, and tech stalwarts," Ives wrote. "Our top 10 names to own and take advantage of this latest tech sell-off includes: Nvidia, Microsoft, Amazon, Alphabet, Salesforce, Palantir, Tesla, Apple, Oracle, and Snowflake."
Amazon Q4 Earning Due Soon
Meanwhile, Amazon is yet to announce a date for its fourth quarter earnings report but the results are expected soon. Last year, Amazon reported Q4 results on Feb. 1.
For the report, analysts are projecting that Amazon's earnings will increase 48% to $1.48 per share, according to FactSet consensus. Sales are projected to increase 10% to $187.3 billion.
Amazon stock rallied 6.2% after the company reported third-quarter earnings on Oct. 31.
Amazon beat expectations with a 52% increase in earnings, to $1.43 per share. Sales growth of $158.9 billion, up 11% year over year, also beat expectations.
While Amazon's sales forecast for the current quarter came in lighter than expected, the company's operating income impressed.
Analysts See 13% 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 and Meta. Amazon joined the blue-chip Dow Jones Industrial Average earlier this year.
Despite the stock's recent push to record highs, 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.
As of Monday, the average target price for Amazon stock from analysts is 246.88, FactSet says. The average target implies roughly 13% upside from Amazon's price as of market close Friday
Amazon Market Cap
You can check for Amazon's current stock price here. Amazon's market cap was $2.30 trillion, as of Jan. 13. Here is how the stock has performed over time:
| Time Period | Amazon Stock % Gain | S&P 500 % Gain |
|---|---|---|
| Previous 12 Months | 44.6 | 22.5 |
| Three Year | 34.7 | 24.6 |
| Five Years | 130.3 | 77.94 |
| Since 1997 Amazon IPO | 249,966.7 | 605 |
