After strong weekly gains, AMZN declines amid market pressure.
- Amazon shares gained 9.2% last week, its best weekly performance since April.
- Amazon has shown strong business momentum in recent quarters, but that has failed to translate into stock gains.
- Stocktwits sentiment AMZN was ‘bullish’ as of the latest reading.
Amazon.com, Inc.’s shares retreated early Monday, after posting their best weekly gains in over eight months, signalling profit-booking trades.
Amazon shares have rebounded sharply after a lacklustre 2025. Despite solid business growth, the stock struggled to sustain momentum and rose just 5.2% last year, but has already climbed 7.2% barely two weeks into January.
AMZN fell about 1% in early premarket trading, tracking broader market pressure amid a legal escalation involving Federal Reserve Chair Jerome Powell and concerns over a potential U.S. response to unrest in Iran.
Retail’s View
On Stocktwits, retail sentiment for the ticker shifted lower to ‘bullish’ from ‘extremely bullish’ the prior day, even as message volume remained high.
A user advised holding the stock for the long term: “Been riding $AMZN $GOOGL $AAPL for 10 years. Diamond hands, real conviction. Built different. I’m not trading these, I’m owning them. Probably forever.”
There were also sell calls: “Back to $220 this week. Strong Sell.”
Strong Fundamentals, Analysts Upbeat
Some investors have been concerned because the e-commerce and cloud giant’s healthy fundamentals haven’t translated into stock gains.
Amazon beat expectations for the second quarter and offered an upbeat holiday-quarter forecast in December, but some pockets of investors expressed concern about growth in its cloud unit, which is significantly larger than the nearest rival, Microsoft’s Azure. Shares fell in the aftermath.
Currently, 63 of the 67 analysts covering the stock rate it ‘Buy’ or higher, and four rate it ‘Hold,’ according to Koyfin. Their average price target of $294.94 implies a 20% upside to the stock’s last close.
Recent Developments
In recent news, Amazon is planning to open a large-format store – larger than a typical Walmart location – marking its latest experiment in physical retail.
The company has submitted plans for a proposed 229,000-square-foot store in Orland Park, Illinois, that would offer a range of products, including groceries, household essentials, and general merchandise, the city said on Saturday.
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