Valued at a market cap of $2.3 trillion, Amazon.com, Inc. (AMZN) is a global e-commerce and technology giant operating through North America, International, and AWS segments. Beyond retail, Amazon has expanded into cloud computing, artificial intelligence with Alexa-powered devices, advertising, and media production, solidifying its presence across multiple industries.
Companies valued over $200 billion are generally described as “mega-cap” stocks, and Amazon fits right into that category. Amazon serves millions of customers worldwide through its online and physical stores, supported by 1.7 million small and medium businesses and over 240 AWS services that power innovation. It offers Prime, Alexa, Echo, AWS AI, and entertainment through Prime Video, Twitch, and Audible.
Active Investor: FREE newsletter going behind the headlines on the hottest stocks to uncover new trade ideas
However, the Seattle, Washington-based company pulled back 12.1% from its 52-week high of $242.52, recorded on Feb. 4. Shares of Amazon have risen 3.7% over the past three months, outpacing the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 2.2% decrease over the same time frame.
Longer term, AMZN stock is down 2.8% on a YTD basis, outperforming XLY’s 4% decline. Moreover, shares of Amazon have gained 22.9% over the past 52 weeks, compared to XLY’s 18% return over the same time frame.
AMZN stock has been trading above its 50-day and 200-day moving averages since last year. But, the stock has recently fallen below its 50-day moving average.
Despite Amazon’s strong Q4 2024 results, with EPS of $1.86 and revenue of $187.8 billion on Feb. 6, its stock dropped over 4% due to weak Q1 2025 guidance. The company forecasted revenue between $151 billion and $155.5 billion, below analysts’ $158.33 billion expectation, even after accounting for a $2.1 billion foreign exchange headwind. Concerns over rising capital expenditures, particularly for AWS expansions and fulfillment improvements, also weighed on investor sentiment.
Moreover, in comparison, rival MercadoLibre, Inc. (MELI) is outperforming AMZN. Shares of MercadoLibre have climbed 33.9% over the past 52 weeks and 26.5% on a YTD basis.
Due to AMZN’s outperformance relative to the broader sector, analysts are bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 50 analysts covering the stock, and as of writing, AMZN is trading below the mean price target of $269.34.