Amazon stock has rebounded from a selloff that followed its second-quarter results at the end of July. But it remains to be seen whether the e-commerce giant's shares can rally back to highs from the start of the year.
Amazon stock was trading near 229 on the stock market today — roughly 5% higher from where shares started the year. That's after Amazon rallied 25% from May through the end of July to erase the majority of a deep spring slide that started in late February. But Amazon stock fell 8% following its Q2 results on July 31 and is still underperforming the S&P 500 for the year. The stock is also chasing a high of 242.52 reached in February.
Shifts in President Donald Trump's tariff plans contributed to the roller coaster ride. Amazon stock tumbled following April 2's "Liberation Day," when Trump announced his broad tariff plan. But they surged in a relief rally once Trump announced a deal on May 12 to lower the steepest tariffs on Chinese imports.
Meanwhile, analysts are scrutinizing the position of the Amazon Web Services' cloud business in the battle for enterprise artificial intelligence spending against Microsoft. Amazon's cloud growth accelerated only slightly in Q2, a letdown for investors compared to stronger performances from cloud rivals Microsoft and Google-parent Alphabet
Walmart, meanwhile, is chasing Amazon's big lead in U.S. e-commerce. On the other side, investors are closely watching Amazon's effort to win grocery business from market-leader Walmart.
Despite an up-and-down 2025, Amazon stock still has a buy call from 94% of the 70 analysts following the stock, according to FactSet.
Here's what to know about recent stock action and news from Amazon stock for investors weighing whether it is a buy or sell:
Amazon Stock Jumps From 50-Day Moving Average
Amazon stock was down a fraction in regular trading Monday on a mixed overall day for stocks.
Shares pushed back over Amazon's 50-day moving average on Friday after slumping below that level during trading earlier this week. The stock got a boost after Federal Reserve Chairman Jerome Powell indicated the Fed is leaning toward cutting rates. Amazon also pushed back above its 21-day moving average, a test of short-term investor support at current levels.
Amazon stock is hovering above a 5% buy zone from a 214.84 cup-with-handle base entry, according to IBD MarketSurge. Shares broke out above that level in June and climbed to a five-month high of 236.53 on July 31 before slumping in early August.
A bounce up from the 50-day line on Friday offered a potential early entry for Amazon stock.
Meanwhile, Amazon's Relative Strength Rating sits at 79 out a best-possible 99. That means Amazon has outperformed 79% of stocks in the IBD database over the past 12 months. While that is an improvement from a 68 score three months ago, IBD recommends focusing on stocks with at least an 80 RS Rating.
On the other hand, the IBD Stock Checkup tool shows Amazon stock holds a very strong IBD Composite Rating of 96 out of a best-possible 99. The score combines five separate proprietary ratings into one rating.
Investors also will want to check out IBD's Big Picture column for the current market direction before considering any buy points.
What Walmart Earnings Mean For Amazon
The 30-year-old Amazon is one of the world's most valuable companies. It is the leader in e-commerce through Amazon.com 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 last year.
Meanwhile, Wall Street analysts following Amazon stock have set an average target price of 263.34, according to FactSet, implying roughly 15% upside from Amazon's price as of Friday's close.
Jefferies analyst Brent Thill told clients in a note Sunday that Walmart's strong Q2 revenue offers a positive signal for Amazon as well. Walmart published quarterly results early Thursday.
Thill added, however, that Walmart's leaders warned investors that its costs are increasing as it replenishes inventory under the latest tariffs levels.
"For Amazon, this translates into some headwinds in discretionary retail spend," Thill wrote. "But Amazon's higher-income Prime base, ad growth and AWS could help offset headwinds, which would protect Amazon's rev growth more than Walmart's."
Amazon Q2 Earnings Beat; Guidance And Cloud Growth Disappoint
Amazon stock tumbled 8% after it published Q2 earnings on July 31.
There was some positives in the results. Amazon shook off tariff concerns to post a stronger-than-expected 33% increase in adjusted earnings, to $1.68 per share. Overall revenue grew 13% to $167.7 billion, also beating expectations.
But the headline results were overshadowed by two main concerns. One was that so-so revenue growth from Amazon Web Services resurfaced fears that the company's dominant cloud offering is losing ground in AI.
Beyond that, Amazon's guidance for Q3 operating income was lower than Wall Street forecasts. Some analysts noted Amazon typically takes conservative approach toward guidance. But Amazon's leadership also acknowledged that its unclear how tariffs will ultimately shake out, even though they haven't seen a major impact yet.
"Amazon's quarter was defined by AWS growth, which was a bit disappointing as expectations heading into the print had been primed by significant growth acceleration from Microsoft Azure and Google Cloud," William Blair analysts Dylan Carden and Arjun Bhatia wrote to clients following the report. "While AWS accelerated, its acceleration was much more modest than its peers."
Amazon Market Cap
You can check for Amazon's current stock price here. Amazon's market cap was $2.43 trillion, as of the Aug. 25. Here is how the stock has performed over time:
| Time Period | Amazon Stock % Gain/Loss | S&P 500 % Gain/Loss |
|---|---|---|
| Year-To-Date | 4.2 | 9.91 |
| Previous 12 Months | 29.1 | 14.7 |
| Three Years | 66.5 | 53.9 |
| Five Years | 36.6 | 87.7 |
| Since 1997 Amazon IPO | 254,088 | 679 |
*Prices as of August 25
