Amazon stock has shaken off a slump that followed its second-quarter earnings report in late July and is chasing a return to record highs. Shares of the tech giant got a recent boost from news its fledgling satellite internet business landed a large client.
Amazon stock was trading near 235.85 in recent action on the stock market today. With a 1.5% gain Monday, Amazon stock briefly broke out beyond a flat base buy point of 236.53, according to IBD MarketSurge.
Shares of the e-commerce and cloud-computing giant are roughly 7.5% higher year-to-date. 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 a roughly 10.5% gain for the S&P 500 for the year. The stock is also chasing a high of 242.52 reached in February.
Investors are still sorting out what President Donald Trump's tariff plans will mean for Amazon's e-commerce business. 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 with stronger performances from cloud rivals Microsoft and Google parent Alphabet
Walmart, meanwhile, is chasing Amazon's big lead in U.S. e-commerce. Meanwhile, investors are closely watching Amazon's effort to win grocery business from market-leader Walmart.
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 Breakout Powered By Satellite Internet Deal
Amazon stock's brief breakout Monday was set up by a jump in trading late last week. Shares gained more than 4% after Amazon announced that JetBlue will be using Amazon's satellite internet service in 2027. Called Project Kuiper, the satellite internet initiative has more often acted as a drag on Amazon stock. Some analysts have concerns about the cost to launch the number of satellites required to compete against Starlink, the service offered by Elon Musk's SpaceX.
But Amazon stock jumped up from its 21-day line following the JetBlue news Thursday. Further gains Monday pushed the stock past the flat base buy point. Early Tuesday trading put Amazon back below that entry, however.
Meanwhile, Amazon's Relative Strength Rating sits at 75 out a best-possible 99. That means Amazon has outperformed 75% of stocks in the IBD database over the past 12 months. While that is an improvement from a 71 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 strong IBD Composite Rating of 95 out of a best-possible 99. The score combines five separate proprietary ratings into one easy-to-use rating.
Investors also will want to check out IBD's Big Picture column for the current market direction before considering any buy points.
Wall Street Analyst View On Amazon Stock
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.
Despite an up-and-down 2025, Amazon stock has a buy call from 94% of the 70 analysts following the stock, according to FactSet.
Meanwhile, Wall Street analysts following Amazon stock have set an average target price of 263.20, according to FactSet, implying roughly 12% upside from Amazon's price as of Monday's close.
Analysts at Wedbush Securities kept Amazon stock in their "Best Ideas" list in a recent update note sent to clients.
"We continue to like Amazon, especially after the announcement regarding expanding its grocery efforts leveraging its existing nationwide network of fulfillment centers and delivery trucks," the Wedbush client note said. "The company seems to have finally figured out how to store and fulfill perishables for same-day delivery."
Amazon Q2 Earnings Beat; Guidance And Cloud Growth Disappoint
Meanwhile, Amazon stock tumbled 8% after it published Q2 earnings on July 31.
There were 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. First, 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 a conservative approach toward guidance. But Amazon's leadership also acknowledged that it's 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 $2.51 trillion, as of Sept. 9. Here is how the stock has performed over time:
| Time Period | Amazon Stock % Gain/Loss | S&P 500 % Gain/Loss |
|---|---|---|
| Year-To-Date | 7.5 | 10.5 |
| Previous 12 Months | 37.6 | 20.1 |
| Three Years | 81.7 | 62.1 |
| Five Years | 49.75 | 94.9 |
| Since 1997 Amazon IPO | 261,944 | 683 |
*Prices as of Sep. 9
