Amazon shows short-term growth potential, analysts suggest

Amazon shares may have potential for short-term gains, according to analyst Katie Stockton. Following a recent "breakaway gap," she notes that the stock has found support after crossing its 200-day moving average, which is around $200. This initial improvement comes as many big tech stocks have been struggling in 2025. Companies like Apple, Alphabet, Nvidia, and Tesla have seen poor returns compared to others in the S&P 500. However, after being deeply oversold, these stocks, including Amazon, could participate in a brief rally in the market. Stockton sets a short-term target for Amazon at around $218, an increase of nearly 8%. Despite these promising signs, she warns that the monthly trends for Amazon show a weakening outlook for the rest of the year. In January, a sell signal appeared, indicating a potential pause in Amazon's long-term growth. Furthermore, some indicators suggest that the current rally may not be sustainable. Therefore, investors are advised to use any bounce in share price to assess their positions carefully. Given the mixed signals from Amazon's daily and monthly performance, investors should proceed with caution and consider risk management strategies.