Amazon Inc. (NASDAQ: AMZN) is under pressure following its Q4 and FY 2024 earnings report, released on February 6, despite delivering a double beat on earnings per share (EPS) and revenue.
While the results initially appeared strong, investor sentiment soured after the company issued weaker-than-expected Q1 2025 guidance.
The company’s Q1 revenue forecast of $151 billion to $155.5 billion fell short of Wall Street’s consensus estimate of $158.5 billion.
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Meanwhile, Amazon Web Services (AWS) posted 19% revenue growth during the quarter, compared to the previous year’s 13% growth rate. However, AWS continued to lag behind competitors, with Azure growing by 31% and Google Cloud expanding by 30%, raising concerns about Amazon’s competitive position in the cloud sector.
This disappointment sent AMZN stock into a downward trend, with losses extending to $216 as of February 21, marking a 2.5% decline in the latest trading session.
Despite the pullback, analysts remain bullish, viewing the dip as a buying opportunity rather than a fundamental weakness. While weaker guidance initially rattled investors, it has done little to shake Wall Street’s confidence in Amazon’s long-term growth trajectory.
Technical analysis spots the big buying opportunity for Amazon
In addition to analyst optimism, noted technical analyst TradingShot has identified a bullish setup for Amazon, projecting a medium-term rebound toward $252.50.
According to the analysis, Amazon’s price action has followed a well-defined upward channel over the past year, with each pullback acting as a launchpad for the next leg higher.
The most recent pullback saw AMZN break below the 50-day moving average for the first time since September 2024, with the one-day RSI sitting near 40, mirroring the April 25, 2024, low.
During that period, the stock found support near the 0.5 Fibonacci retracement level, which ultimately fueled a significant rally. A similar setup is now unfolding—a potential buying opportunity for investors looking to enter before the next leg higher.
The analyst expects a rebound toward the 1.236 Fibonacci extension, which would translate to a medium-term price target of $252.50.
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