Wall Street Maintains Bullish Stance on Amazon Despite Sector Turbulence

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While recent market volatility has weighed on technology shares, Amazon's underlying business fundamentals continue to draw strong endorsements from major financial institutions. A notable divergence has emerged between near-term stock price weakness and the overwhelmingly positive outlook held by equity researchers.

The technology sector faced broad selling pressure recently, triggered by disappointing results from Oracle and heightened volatility in semiconductor stocks like Broadcom. Within this environment, Amazon's share price declined, despite an absence of any company-specific negative news.

This pullback aligns with growing investor skepticism toward highly-valued technology and artificial intelligence stocks. Many are questioning whether the lofty revenue expectations tied to AI can be justified in the near term. Amazon was caught in this sell-off, even though the company is already generating concrete revenue from AI applications through its cloud division, unlike some peers.

From a technical perspective, the stock is undergoing a period of consolidation. It shows a weekly decline of 2.24%, bringing its total loss over the past 30 days to 8.57%. Shares currently trade approximately 17% below their 52-week high but remain above the 200-day moving average—a signal that the longer-term uptrend, while paused, is still technically intact.

Unanimous Analyst Confidence and Price Targets

In stark contrast to the short-term market softness, leading analysis firms have reaffirmed their bullish positions. Several institutions issued or reiterated their ratings just before the weekend, each pointing to significant potential upside.

• TD Cowen confirmed its "Strong Buy" rating and a $300 price target on Thursday.
• Guggenheim initiated its coverage of Amazon with a "Strong Buy" rating and an identical $300 target.
• Wedbush maintains an even more optimistic view, holding firm to a $340 price target.

According to data from Stock Analysis, the analyst consensus is strikingly one-sided: among the 47 experts monitored, not a single "Sell" rating is present. This is interpreted as a clear signal of institutional confidence in the company's medium-term trajectory.

The contradiction between the recent price correction and this optimistic fundamental view can be explained by the tension between macroeconomic concerns and corporate performance. While the market is pricing in sector-wide "AI panic," analysts are focusing on Amazon's specific, tangible growth drivers.

Regulatory Shifts and Competitive Strengths

A significant background factor is the evolving regulatory landscape for e-commerce. Since August 29, 2025, stricter U.S. rules have governed so-called de minimis shipments. These changes primarily complicate inexpensive cross-border deliveries, a model that platforms like Temu and Shein had heavily relied upon.

With the loss of corresponding tax advantages and rising logistics costs, these competitors face increased pressure. Amazon is far less exposed to these new rules due to its extensive, predominantly domestic logistics network, which largely insulates it from the impact. Analysts at HSBC even suggest that Amazon may have gained market share during the critical holiday shopping season, partly thanks to faster delivery times and more stable supply chains.

Furthermore, the current AI skepticism largely affects companies with vague monetization pathways in this field. Amazon presents a different picture: its cloud division, AWS, reported year-over-year growth of 20.2% in the most recent quarter. Company leadership emphasized that AI workloads are already contributing meaningfully to revenue, thereby validating the substantial infrastructure investments made throughout the year, which had drawn some criticism.

Technical Perspective and Upcoming Catalysts

Technically, the stock is consolidating below a resistance area that recently corresponded roughly to the $230 zone in U.S. trading. While the recent closing price of €192.68 represents a decline of just over 10% since the start of the year, it remains slightly above the 200-day line. Therefore, a clear technical breakdown has not yet occurred.

Attention is now shifting toward the upcoming earnings season. The next quarterly report is anticipated for late January 2026, with a primary focus on margins from the crucial fourth quarter. Analysts from HSBC and TD Cowen have already described a "robust" performance during the Black Friday and Cyber Monday period. Should the official results confirm this assessment, the current period of share price weakness may serve as a prime example of the disconnect that can occur between short-term market sentiment and operational reality.