Will Amazon Stock Keep Rebounding This Year?

Core Viewpoint - Amazon's stock performance has been respectable, currently only 9% away from its all-time high, but the rebound has been underwhelming compared to its peers in the tech sector [1][2]. Group 1: Stock Performance - Amazon stock has rebounded by 15% in the last six months but remains virtually flat in 2025, making it the worst performer among the "Mag 7" big tech companies [2]. - Year-to-date, Amazon's performance lags behind Nvidia's 35% gain and Apple's 1% gain [2]. Group 2: Operational Performance - Amazon has exceeded EPS expectations for 11 consecutive quarters, with an impressive average EPS surprise of 22.98% in the last four quarterly reports [5]. - The integration of artificial intelligence across various business facets is a key driver of this operational success [5]. Group 3: AI Integration - Enhancing Customer Experience: Generative AI has been integrated into Alexa for more natural interactions and smarter product listings, enhancing engagement through AI-generated ads [6]. - Revolutionizing E-Commerce Operations: Amazon operates over 750,000 AI-powered robots in its warehouses, optimizing inventory movement and improving efficiency [8]. - Driving Innovation Through AWS: Amazon Bedrock provides developers access to top-tier machine learning models through a single API [9]. - AI in Everyday Services: AI is utilized in Amazon One for payments and identity verification, and in pharmacy and logistics for streamlining services [10]. Group 4: Broker Recommendations - Amazon has an average brokerage recommendation of 1.14 on a scale of 1 to 5, indicating a bullish outlook from 56 brokerage firms [11]. - The average price target for Amazon stock is $265.85, suggesting a potential upside of approximately 21% [12]. Group 5: Technical Analysis - Amazon stock has recently fallen below its 50-day simple moving average of $225, indicating a potential short-term bearish signal, but it has shown resistance above its 200-day SMA of $212 [14]. Group 6: Conclusion - Buyer exhaustion may be affecting Amazon's stock performance, but EPS revisions are trending higher for fiscal 2025 and FY26, indicating potential for a buy rating in the future [15][16].