Amazon.com Inc. (NASDAQ: AMZN) may still be down 25% from its all-time high in February, but the stock is quietly showing signs of life.
[content-module:CompanyOverview|NASDAQ:AMZN]After closing just under $180 on Tuesday, shares are now up around 10% from last week’s low, with a trading pattern that suggests the worst of the selling could be in the rearview mirror.
With earnings due next week, there’s a growing sense that Amazon could be setting up for a strong move higher. Expectations are building that the company will deliver yet another beat, continuing its long-running track record of outperforming Wall Street forecasts. For investors on the sidelines, this might be one of the better setups heading into earnings that we’ve seen in recent quarters.
Here are three reasons why Amazon is starting to look compelling again.
1. Strong Earnings Track Record Fuels Optimism
One of the biggest reasons to like Amazon ahead of earnings is how consistently it delivers.
Over the past year, the tech titan has posted beat after beat, outperforming expectations across revenue, earnings, and margins. Its most recent report in February marked its most profitable quarter on record, and analysts widely expect that momentum to carry through into next week’s numbers.
Amazon has benefited from a number of key tailwinds. Amazon Web Services (AWS) is stabilizing, advertising revenue continues to grow, and the company has shown clear discipline in cost control. This mix of top-line strength and bottom-line efficiency has helped restore investor confidence after a shaky 2022 and early 2023.
Heading into this earnings cycle, expectations remain high, but not unrealistically so. The stock has already corrected sharply, meaning the bar for a “better than feared” reaction may not be particularly high. And if Amazon can deliver yet another solid quarter, the recent lows could easily prove to be a turning point.
2. Bullish Analyst Sentiment Is Building
[content-module:Forecast|NASDAQ:AMZN]Wall Street hasn’t lost faith in Amazon. In fact, recent analyst updates suggest confidence may be rising.
Just this week, teams from DA Davidson, Citigroup, and Morgan Stanley reiterated their Buy ratings on the stock. Morgan Stanley’s update, in particular, stood out, with a price target of $245, which implies a nearly 40% upside from Tuesday’s close.
These analysts are betting that Amazon’s long-term growth engines are still firmly in place. That includes AWS, its dominant position in global e-commerce, and its growing leadership in digital advertising. Even in a tough macro environment, the company continues to pull the right operational levers, and the street is taking notice.
What’s also notable is that these bullish calls are coming after a 25% pullback. In other words, analysts are leaning in, not backing off, at a time when sentiment remains cautious. That’s often a signal that institutional money could be preparing to rotate back in.
3. Technical Setup Suggests a Bounce
While the recent pullback has been steep, Amazon’s chart is starting to stabilize. The trading range has tightened considerably over the past few sessions, and the stock has now put together several higher closes. That’s a sign the bulls may be regaining control.
[content-module:TradingView|NASDAQ:AMZN]The RSI, which dropped as low as 27 earlier this month, has continued to rise back toward neutral territory. This shift from oversold conditions suggests that selling pressure is beginning to ease. With a more stable base forming between $170 and $180, the potential for a pre-earnings bounce is growing.
If momentum continues to build, a move back toward the $190–200 range isn’t out of the question ahead of next week’s report. Add in the bullish analyst commentary and Amazon’s history of earnings beats, and the technical setup becomes even more compelling.
A Bullish Setup Too Good to Ignore
Amazon’s stock may still be well off its highs, but the setup into next week’s earnings looks increasingly bullish.
The stock is rebounding from deeply oversold levels, Wall Street is reaffirming its support, and expectations for another strong report are building.
For investors looking to get positioned ahead of a possible pre-earnings run, this may be one of the best entry points in months. If Amazon delivers as expected, and history suggests it will, the stock could quickly snap back toward the top of its recent range.
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