After underperforming the broader markets significantly in 2022, shares of tech giant Amazon (NASDAQ:AMZN) have recovered some of the lost ground. AMZN stock gained about 22% year-to-date, outperforming the S&P 500 Index (SPX). While AMZN stock has appreciated, its technical indicators suggest a Buy, implying further upside from current levels.
Per TipRanks’ technical analysis tool, AMZN’s 50-Day EMA (exponential moving average) is 98.63, while its price is $102.3, implying a Buy. Further, its shorter duration EMA (20 days) also signals a bullish trend.
While Amazon’s stock has gained in value, its RSI (Relative Strength Index) of 57.36 still doesn’t signal an overbought condition. Based on Pivot Points, AMZN has the next resistance level at $108. It could also face resistance near $114, which happens to be the swing high. (See the graph below.)
What’s the Prediction for AMZN Stock?
Overall, AMZN is a Buy based on our easy-to-understand summary signals (which combine the moving averages and the technical indicators to provide a summarized signal).
Economic uncertainty, cost headwinds, higher interest rates, and a slowdown in its cloud business could continue to hurt its financial performance in the short term. However, its market leadership in e-commerce and cloud computing will likely support its stock price. Further, the ongoing strength of its advertising unit is positive.
On Sunday, Mizuho Securities analyst James Lee stated that he is bullish about AMZN stock and sees macro issues as short-term, not structural. Lee said, “Amazon remains a Buy in our universe, as we see potential EBITDA upside in 2024 from products such as advertising, expanding Prime products, and AWS up-sells.”
Including Lee, 35 analysts have recommended buying AMZN stock. Meanwhile, one analyst has a Hold recommendation. Overall, AMZN has a Strong Buy consensus rating. Further, analysts’ average 12-month price target of $135.88 implies 32.83% upside potential.
Bottom Line
With bullish technical signals, a Strong Buy consensus rating, and an Outperform Smart Score of nine, AMZN stock is more likely to beat the broader market averages. Meanwhile, the company’s dominant positioning in the e-commerce space and the expected recovery in the cloud business are positives.
