Amazon got a tariff reprieve, but is Amazon stock rounding back into shape?
Share of the tech giant are ahead 10% in May after slumping 10% in March and another 3% in April. Amazon stock is down 14.5% overall this year, as of Friday's close. That's despite investors entering this year optimistic about Amazon's AI potential and e-commerce profitability gains. Analysts are scrutinizing the position of the Amazon Web Services' cloud business in the battle for enterprise artificial intelligence spending against Microsoft. Walmart, meanwhile, is chasing Amazon's big lead in U.S. e-commerce.
But the biggest concerns for Amazon stock focus on how tariffs could hit the company's massive digital storefront. Amazon stock tumbled following April 2's "Liberation Day" when President Donald Trump announced his broad tariff plan. But Trump has paused the majority of those levies. Amazon rocketed 8% on May 12 when the 145% tariffs on Chinese goods were lowered to 30% though a temporary deal between the U.S. and China.
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 Forms Cup-With-Handle Pattern
Amazon stock fell roughly 1% on the stock market Friday to close at 201.28. Gains so far this month have allowed Amazon stock to move back above its 21-day, 50-day and 200-day moving averages. In another positive signal, Amazon's 21-day line crossed back above its 50-day last week. The stock did test its 200-day line after it fell Friday on Trump's latest tariff threat.
The IBD MarketSurge pattern recognition tool shows Amazon stock in a cup-with-handle base with a buy point of 214.84. That entry represents a return to a three-month high Amazon reached last week.
Amazon's Relative Strength Rating sits at 68 out a best-possible 99. That means Amazon has outperformed just 68% of stocks in the IBD database over the past 12 months. While that is an improvement from a 40 score a month ago, 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 93 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.
Amazon Q1 Earnings Beat; Guidance Disappoints
Amazon stock fell on May 1 after the tech giant reported a mixed outlook for the current quarter, adding to investor fears about the impact of tariffs. Amazon's profit-driving cloud business also recorded March quarter revenue slightly below Wall Street expectations.
Amazon's overall top- and bottom-line results for the first quarter beat Wall Street estimates. Earnings increased 62% year-over-year to a $1.59 per share while sales grew 9% to $155.2 billion.
But investors were largely focused on Amazon's outlook. Amazon projected $15.3 billion in operating income for Q2 at the midpoint of its range, well below the $17.6 billion in operating income that analysts were projecting prior to the report
Amazon executives told analysts that the company believes it can gain overall retail market share even if tariffs slow consumer spending. But uncertainty was a clear theme in the company's commentary.
Amazon fell in trading following the report but pared losses to close only a fraction lower Friday.
Analysts See 17% Upside For Amazon Stock
The 30-year-old Amazon is one of 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 last year.
Despite its struggles this year, Wall Street analysts remain bullish overall about Amazon stock. Of the 72 stock analysts following Amazon, 96% have a buy rating, according to FactSet.
But the price target those analysts have set for Amazon's value over the next 12 months has slowly faded from highs at the beginning of the year. Analysts hold an average target price of 238.50, according to FactSet, implying roughly 17% upside from Amazon's price as of Tuesday. But that average target price is down 11% from a high near 268.39 in February.
Evercore ISI analyst Mark Mahaney stuck by a positive outperform call and 270 price target for Amazon stock, in a client note last week that summarized first-quarter earnings results for internet-focused companies.
"Shares traded off modestly post the Q1 print on the soft Q2 operating income guide and the lack of AWS acceleration given very strong (Microsoft) Azure results," Mahaney wrote. "We, however, view the core near-term and long-term thesis as well intact."
Amazon Market Cap
You can check for Amazon's current stock price here. Amazon's market cap was $2.15 trillion, as of May 22 market close. Here is how the stock has performed over time:
| Time Period | Amazon Stock % Gain/Loss | S&P 500 % Gain/Loss |
|---|---|---|
| Year-To-Date | -7.4 | -.7 |
| Previous 12 Months | 10.9 | 10 |
| Three Year | 88.77 | 49.74 |
| Five Years | 66.7 | 97.8 |
| Since 1997 Amazon IPO | 208,477.8 | 588.6 |
*Prices as of May 22.
