Amazon Jumped Today -- Is the Stock a Buy Right Now?

Core Viewpoint - Amazon's stock experienced significant gains, closing up 3.6% after a volatile trading session, influenced by positive news regarding U.S.-China trade relations [1][2]. Group 1: Stock Performance - Amazon's share price rose as much as 5.7% during the session, while the S&P 500 and Nasdaq Composite increased by 2.5% and 2.7%, respectively [1]. - Despite today's gains, Amazon's stock is down 21% in 2025 and 28.5% from its peak [3]. Group 2: Market Context - The stock market showed high volatility but rebounded following a report indicating potential de-escalation in the U.S.-China trade war [2]. - The previous day's sell-off was attributed to President Trump's criticism of the Federal Reserve and calls for interest rate cuts to support economic growth [3]. Group 3: Investment Considerations - Amazon holds leading positions in e-commerce and cloud infrastructure, with a current trading valuation of 27.5 times this year's expected earnings, though macroeconomic and geopolitical uncertainties pose risks [4]. - The ongoing trade war and a weaker economic growth outlook may negatively impact Amazon's online retail and AWS customer spending [4]. - For long-term investors, Amazon is seen as a potential winner due to its positioning in AI services and early-stage benefits from automation trends, suggesting a dollar-cost averaging strategy for stock purchases [5].