Out of the top techs last year, Amazon’s (AMZN) share price was the least exciting.
Look at its trading range over past 12 months. Price was mostly bouncing in between $200-$240, with occasional ventures outside these parameters.
The tariff-induced sell-off in April kicked prices to $160; a bout of exuberant buying sent prices to $255. But these sharp gyrations did not last long as prices quickly returned to trend.
The latest weekly dynamics, however, may change Amazon’s technical picture.
The $2.5 trillion company is putting on the second largest weekly gain since late October. This shows persistent buying of the stock.
Moreover, as prices are so near its all-time highs, any further accumulation at the margin may send the stock into an uncharted territory.
Based on this positive chart pattern, should one buy into the world’s largest retailer?
Doubters will point out that the Amazon tend to be a slow-moving stock. Yes, prices are in a cyclical bull trend, but there is no technology ‘X factor’ here to push the stock up fast. AZMN is a stock for the more conservative investors.
Further, the company is geared to the US consumer market, which may or may not perform well in 2026.
We should, however, not forget that Amazon is the owner of a large IT backend service known as AWS (Amazon Web Services). The division is highly profitable and still growing. Recently, Amazon announced a $50 billion investment in new IT infrastructure to cater for US government services.[1]
In addition, the company is also a big investor in the multi-billion one of the gen-AI leaders Anthropic. This company is poised to list in the next few quarters, with a valuation worth hundred of billions.
In sum, Amazon’s boring trading phase may be coming to an end. A rally into $260 should not be too difficult and some momentum buying may be warranted. Stops along the highlighted uptrend support.
