Amazon: Why Some Are Growing Bearish, and Why They're Wrong

Core Viewpoint - Amazon.com Inc has experienced a consolidation phase after a significant rally, which may indicate a pause before further upward movement [1][10] Group 1: Stock Performance and Market Sentiment - Amazon's shares are nearing February's all-time high, while the S&P 500 index approaches its record close, indicating a strong market environment [2] - Retail investors have reduced their exposure to big tech stocks, with tech's share of retail inflows dropping from 41% in early April to 23% by mid-June [3] - Despite a cooling sentiment, Amazon's stock remains 10% below its all-time high, presenting a potential opportunity for investors [5] Group 2: Company Fundamentals - Amazon's fundamentals are strong, with the latest earnings report showing a 17% year-over-year revenue increase in its AWS segment, indicating robust demand [4] - Analysts maintain a positive outlook, with a 12-month stock price forecast of $245.64, suggesting a 15.87% upside from the current price of $211.99 [6] - Multiple analysts, including Moffett Nathanson, have reiterated their Buy ratings and increased price targets, reflecting confidence in Amazon's future performance [7] Group 3: Technical Analysis - Amazon's stock maintains a bullish trend with a higher-high, higher-low structure, indicating strong buying interest during dips [8] - Recent price action shows a nearly 4% increase in shares, suggesting that Wall Street may be positioning for another breakout [9] - The overall technical indicators support the notion that the stock is in a healthy consolidation phase rather than a downturn [10]