After falling to fresh lows for the year on Apr. 7, 2025, shares of Amazon.com (NASDAQ:AMZN) staged a strong rally into the close, finishing the day up 2.4%—a notable contrast to the broader market’s weakness.
While the S&P 500 ended the session in the red after whipsawing back and forth, Amazon’s strength on the bid stood out like a beacon, suggesting that smart money might already be moving back in.
It was the second day in a row where Amazon rallied off its lows, a pattern that’s beginning to suggest the bears are running out of steam. At $175 following Monday’s session, shares are still down nearly 30% from their February all-time high. But for those looking to get involved in a mega-cap tech stock at a deep discount, this could be exactly the kind of setup worth paying attention to.
Signs of Exhaustion Among Sellers
A major factor underpinning Amazon’s current bounce is how oversold it has become in recent weeks. On Friday, the stock’s relative strength index (RSI), a momentum indicator that measures the speed and change of price movements, dropped to 27.
An RSI below 30 typically signals extremely oversold conditions and suggests a potential rebound is imminent. That makes Monday's bounce all the more interesting, especially as it came amid broader market volatility and weakness.
Notably, the $160–175 zone has started to act as a clear demand range. Buyers have repeatedly stepped in here over the past two sessions, helping to form what could be a base of support. These kinds of setups can quickly reverse into short-term rallies, especially if macro conditions stabilize.
Analysts Remain Unshaken
Fresh support on Wall Street is bolstering the technical bounce. Late last week, analysts at Citigroup and Westpark Capital reiterated their Buy ratings on Amazon despite the sell-off. The move signals that institutional sentiment hasn’t wavered and, if anything, is turning opportunistic.
Westpark Capital’s Curtis Shauger went further than most, slapping a fresh $280 price target on the stock. That implies an upside of more than 60% from Monday’s close. Shauger noted that despite recent weakness, Amazon’s long-term growth story remains compelling, particularly in high-margin segments like AWS, digital advertising, and logistics.
That kind of price target, especially during a broader market pullback, tends to get attention. It also reinforces the idea that this recent dip may be less about Amazon’s fundamentals and more about broader risk-off sentiment in equities. If Amazon continues to find buyers at these levels, it won’t take much to spark a reversal, particularly with so many traders now eyeing a potential pre-earnings bounce.
Earnings on the Horizon
Speaking of earnings, Amazon is scheduled to report in just over two weeks. The company has consistently outperformed expectations over the past year, regularly topping consensus forecasts across both revenue and earnings. If it delivers another strong print, this current pullback may soon be seen as a textbook entry point in hindsight.
Pre-earnings run-ups are a well-known phenomenon, especially when a stock is deeply oversold and sentiment has shifted too far to the negative. With Amazon showing signs of forming a bottom and analysts reaffirming their bullish stance, the conditions are ripe for such a move.
Weighing Up An Entry
Amazon’s nearly 30% drop since February has been steep, but the bounce from recent lows, the improving technical backdrop, and fresh analyst upgrades all suggest that a turning point may be near. RSI levels are recovering from oversold conditions, price action is firming, and Wall Street remains confident in the long-term story.
If you’ve been waiting for an opportunity to get involved with Amazon, this could be one of the better setups we’ve seen in months. With earnings just around the corner and a 60% upside case from Westpark Capital now on the table, it’s worth watching closely.