Amazon: Why May Is the Last Month to Get the Stock at a Discount

Core Viewpoint - Amazon.com Inc. has experienced a significant recovery in its stock price, closing just above $205, marking a nearly 30% increase since its April low, driven by improving U.S.-China trade relations which directly impact its business model [1][2]. Group 1: Stock Performance and Market Position - The stock is trading near its highest levels since February, regaining its leadership position in the market, with analysts suggesting that May may be the last opportunity to purchase shares around the$ 200 level [2]. - The recent rebound was largely triggered by the U.S. and China agreeing to temporarily revise certain tariffs, benefiting Amazon significantly, which saw a nearly 10% jump in a single session [2][3]. - Analysts have issued bullish reports on Amazon, with a 12-month stock price forecast averaging $244.09, indicating a potential upside of 19.13% from the current price [6]. Group 2: Impact of Trade Policy - Amazon is highly exposed to trade policy, with tariffs on Chinese imports raising costs across its e-commerce platform, affecting both its retail operations and third-party sellers, who account for approximately 60% of sales [3]. - The easing of trade tensions provides Amazon with a near-term margin boost and longer-term stability, alleviating one of the major concerns affecting the stock [5]. Group 3: Analyst Sentiment and Forecasts - Analysts are optimistic about Amazon's potential, citing improving macro conditions, its leadership in cloud and advertising, and ongoing cost discipline as key drivers of this sentiment [7]. - Recent earnings reports have confirmed margin expansion in critical areas, with consumer demand remaining strong, making the investment setup increasingly attractive [8]. Group 4: Technical Analysis - From a technical perspective, Amazon's stock chart appears strong, with bullish indicators such as the MACD configuration and an RSI around 60, suggesting further gains are possible [9]. - The stock is trading above its 50-day and 200-day moving averages, with increased volume on up days, indicating positive momentum [9]. Group 5: Market Trends - Broader market trends are supportive of Amazon's recovery, with the S&P 500 steadily recovering and a renewed risk appetite for growth stocks, particularly those with proven earnings power [10]. - The current market environment, combined with the lifting of trade overhangs, presents a strong upside case for Amazon, with price targets clustering around$ 300 [12].