Long Trade Idea
Enter your long position between $209.51 (yesterday’s intra-day low) and $212.80 (yesterday’s intra-day high).
Market Index Analysis
Amazon.com (NASDAQ:AMZN) is a member of the NASDAQ 100 Index, the Dow Jones Industrial Average Index, the S&P 100 Index, and the S&P 500 Index.
All four indices attempt to stabilize from their recent sell-off, but bullish trading volumes are low.
The Bull Bear Power Indicator for the NASDAQ 100 Index remains bearish with a descending trendline.
Market Sentiment Analysis
Equity futures are lower this morning following yesterday’s rally, sparked by comments from US President Trump that the US and Iran engaged in productive talks over the weekend. He announced a five-day halt on attacks on Iranian oil and energy infrastructure, but Iran officially denies any negotiations are taking place. Oil prices resumed their advance, and uncertainty remains, with volatility expected to remain elevated this week. Today’s PMI data and GameStop earnings are also expected today.
Amazon.com Fundamental Analysis
Amazon.com is one of the Big Five US technology companies and a leader in the global AI race and cloud computing sector. It has excellent profit margins, but its debt remains excessive. AMZN is an industry disruptor but faces stiff competition from China.
So, why am I bullish on AMZN after reversing from 2026 lows?
Amazon.com experiences reaccelerated growth in its AWS unit with a $200 billion backlog, and 2025 revenue growth of 24% was the fastest pace in three years. AMZN plans $200 billion in CAPEX in 2026, and I am extremely bullish on its custom Trainium3 chips and the launch of its Project Kuiper satellite project. Its high-margin advertising business has surpassed YouTube and is on pace for annualized revenue of $85+ billion.
Metric | Value | Verdict |
P/E Ratio | 29.31 | Bullish |
P/B Ratio | 5.36 | Bearish |
PEG Ratio | 1.92 | Bullish |
Current Ratio | 1.05 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
Amazon.com Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 29.31 makes AMZN an inexpensive stock. By comparison, the P/E ratio for the NASDAQ 100 Index is 35.41.
The average analyst price target for AMZN is $280.47. This suggests there is excellent upside potential with reasonable downside risks.
Amazon.com Technical Analysis
Today’s AMZN Signal
Amazon.com Price Chart
The AMZN D1 chart shows price action inside a bullish price channel.
It also shows price action breaking out above its descending Fibonacci Retracement Fan.
The Bull Bear Power Indicator turned bullish with an ascending trendline.
The average bullish trading volumes are higher than the average bearish trading volumes.
AMZN advanced while the NASDAQ 100 Index corrected, a significant bullish confirmation.
My AMZN Long Stock Trade
AMZN Entry Level: Between $209.51 and $212.80
AMZN Take Profit: Between $272.06 and $280.47
AMZN Stop Loss: Between $180.25 and $185.23
Risk/Reward Ratio: 2.14
Ready to trade our analysis of Amazon? Here is our list of the best stock brokers worth checking out.