Should I buy Amazon stock in 2025?

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At HelloSafe, our expert has been tracking Amazon's performance for over three years. Every month, over a million users in the US trust us to analyze market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Amazon.

What is Amazon?

The price of Amazon stock

The price of Amazon stock is falling this week. Currently, Amazon trades at $219.92, with a 24-hour decline of $0.54 and a negative weekly performance. Its market capitalization stands at $2.33 trillion, while the average daily volume over three months is about 42 million shares. The stock trades at a P/E ratio of 35.8, offers no dividend yield, and has a beta of 1.37, indicating higher volatility than the overall market. Investors should be aware that although volatility is significant, Amazon’s growth potential remains strong in technology and cloud sectors.

Our full analysis of Amazon stock

Having reviewed Amazon’s latest financial results and stock performance over the past three years, this analysis synthesizes both quantitative and qualitative insights. We have integrated financial indicators, technical signals, and competitive intelligence using advanced proprietary algorithms. So, why might Amazon stock once again become a strategic entry point into the technology and e-commerce sector in 2025?

Recent performance and market context

Amazon’s stock has recently demonstrated remarkable resilience amid industry-wide fluctuations. The current price stands at $219.92, corresponding to a short-term pullback after an earlier 12-month period of sustained gains. Over the past quarter, the company’s shares have exhibited solid relative performance compared with tech sector peers, supported by strong Q1 2025 financials and robust operational execution. Notably, Amazon reported a 64% jump in net profit year-on-year, well above analyst expectations. The company’s cloud computing arm, AWS, remains a primary driver of profitability, while the North American segment’s performance continues to set new benchmarks. In a macroeconomic context, the ongoing digital transformation, e-commerce penetration, and accelerated adoption of cloud and generative AI technologies create a supportive backdrop, ensuring Amazon benefits from several simultaneous growth vectors.

Technical analysis

From a technical standpoint, Amazon exhibits a compelling set-up for bullish investors. The stock’s RSI (14 days) fluctuates between 67.9 and 71.8, indicating it’s testing overbought territory—a signal often seen during the early stages of a new uptrend. MACD at 3.86 supports a positive momentum, with moving averages including the key 200-day line (now above $205) acting as powerful dynamic support. Current support is clearly established at $200, while recent advances towards the $242 resistance and 52-week highs confirm powerful upward pressure that may indicate a new bullish phase is in the making. Technical structure on daily and weekly charts reinforce a medium-term outlook that favors further appreciation, especially if volume consolidates around these levels.

Fundamental analysis

Amazon’s fundamental profile remains exceptionally robust. Q1 2025 revenues climbed to $155.7 billion, up 9% year-on-year—a testament to the company’s scalability and unmatched operational reach. Net income hit $17.1 billion, marking a 64% year-over-year surge. This performance underlines Amazon’s ability not only to capture growth opportunities but also to convert them into tangible shareholder value. AWS delivered $29.3 billion in revenue for the quarter, continuing to play a pivotal role in group profitability, while e-commerce and advertising businesses maintain double-digit growth. The current P/E ratio of 35.8, though above the historical market average, is aligned with sector leaders, especially given Amazon’s unique growth prospects and unmatched global footprint. The price-to-sales and price-to-book ratios illustrate an ambitious but fundamentally justified valuation, reflecting confidence in ongoing innovation. Amazon’s investments in artificial intelligence and logistics, combined with the strength of its brand and customer loyalty, create substantial long-term competitive advantages that remain largely unmatched.

Volume and liquidity

Trading activity around Amazon stock remains vibrant, with average daily volumes near 42 million shares over the past three months. Such sustained liquidity is a hallmark of institutional confidence and provides a reliable environment for both retail and professional investors to execute strategic entry and exit decisions. The sizable float ensures dynamic price discovery and market responsiveness, which often precedes major price trends. Liquidity is a crucial strength, offering flexibility and minimizing transaction costs even during periods of heightened volatility.

Catalysts and positive outlook

Multiple bullish catalysts now converge to position Amazon for renewed outperformance. The company’s strategic expansion in generative AI—backed by a recent $20 billion investment in US infrastructure—augments AWS’s future growth engine. Innovations such as Amazon Nova and Bedrock further strengthen the group’s dominance in enterprise AI and cloud solutions. Additions like these, along with continuous geographic and segmental expansion, cement Amazon’s role as a vanguard in both technology and retail. Moreover, the global e-commerce sector continues its steady penetration, underpinned by resilient consumer spending and rising demand for digital services. Amazon’s ESG initiatives and commitment to sustainability resonate well with a broader investor base, another factor fueling optimism for sustainable long-term returns. Externally, increasing enterprise cloud adoption and accelerating regulatory clarity around technology giants create a level playing field that helps Amazon extend its market share and operational leadership.

Investment strategies

Several rational strategies can be considered for investors eyeing Amazon’s next act.

• Short-term entry: Traders may seek to capitalize on technical rebounds from the $200 support or breakout plays above $242 into new 52-week highs. Short-term momentum signals suggest a favorable tactical set-up, especially around earnings releases and major product announcements.
• Medium-term positioning: Investors may favor building positions at current levels, as Amazon benefits from cloud-driven profit growth and sustained retail innovation. The firm’s record of steady quarter-over-quarter improvements makes a compelling case for holding through seasonal volatility and sector rotations.
• Long-term accumulation: For those with multi-year horizons, Amazon’s leadership in e-commerce, cloud, and artificial intelligence continues to offer arguably unmatched compound growth potential. Strategic investments and global expansion efforts are likely to unlock significant value creation over five to ten years, particularly as technology adoption cycles accelerate.

In all cases, the ideal positioning is to accumulate near noted support (around $200) or ahead of announced business catalysts, thereby optimizing both risk and opportunity.

Is it the right time to buy Amazon?

Amazon showcases a rare blend of resilient fundamentals, favorable technical alignment, and powerful growth catalysts, all pointing toward renewed upside potential. The combination of double-digit revenue growth, soaring cloud profitability, and relentless innovation creates a uniquely compelling investment narrative. Current technical signals, solid liquidity, and strong analyst consensus suggest that now may be an excellent time to revisit or reinforce exposure to Amazon stock, particularly as the next wave of digital transformation unfolds. For investors seeking growth, diversification, and leadership in core technology sectors, Amazon seems to represent an excellent opportunity to position for long-term value creation in 2025 and beyond.

How to Buy Amazon Stock in the US

Buying Amazon stock online is simple and secure when you go through a regulated US broker. There are two main ways to invest: spot buying (owning the shares directly) or trading via CFDs (contracts for difference). Spot buying is ideal for investors seeking long-term ownership, while CFDs are suited to more active traders who want to take advantage of short-term price movements with leverage. More details about the best brokers for each method are available in the comparison table further down the page.

Spot buying

A cash or spot purchase means you become a direct owner of Amazon shares, recorded in your name. US brokers typically charge a small flat fee per trade, usually around $5 per order, regardless of the amount invested.

Gain scenario

For example, if the Amazon share price is $219.92, you can buy around 4 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

This simple approach is transparent and suitable for beginners and long-term investors seeking capital appreciation.

Trading via CFD

CFD trading on Amazon allows you to speculate on price changes without actually owning the shares. Fees include the bid/ask spread and, if you keep positions overnight, a financing cost. The main advantage is leverage: you can gain greater exposure with less capital—though this also increases your risk.

Gain scenario

You open a CFD position on Amazon shares, with 5x leverage. This gives you a market exposure of $5,000 for your $1,000 investment.

If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).

CFDs can boost gains, but losses are also magnified. They are best for experienced investors who actively manage their risk.

Final advice

Before buying Amazon shares, it is essential to compare broker fees, trading conditions, and available features. The best approach depends on your investment goals: spot buying suits those focusing on long-term growth, while CFDs may interest more active traders. Check our broker comparison table further down the page to help select the platform best suited to your needs.

Our 7 tips for buying Amazon stock

The latest news about Amazon

Amazon posts record Q1 2025 profit, beating consensus with strong US retail and AWS cloud growth. Driven by sustained domestic demand, Amazon reported a net income of $17.1 billion for Q1 2025—a 64% increase year-on-year—far exceeding Wall Street expectations. US revenues, especially from e-commerce and advertising, coupled with AWS’s leading position, fueled these results and reinforced Amazon’s dominance in the American technology sector.

Technical signals reflect renewed bullish momentum as Amazon shares approach key resistance levels. In the past week, Amazon's stock traded near its 52-week high ($242), supported by an RSI between 68 and 72 and a positive MACD, both of which indicate strong upside sentiment. The 200-day moving average at $205 acts as solid support, with high trading volumes confirming increased investor interest.

Consensus among US-based equity analysts trends strongly positive, with upward revisions for 2025 price targets. Out of 48 analysts, the overwhelming majority maintain a "Strong Buy" consensus, raising average 12-month price targets to $242–$246. Optimism is anchored in Amazon’s market-leading positions in both e-commerce and cloud, as well as ongoing successful AI and infrastructure investments in core US markets.

Amazon commits $20 billion to US AI infrastructure, securing its leadership in generative artificial intelligence. The company recently announced massive capital allocation in Pennsylvania for AI data centers, enhancing the capacity and resilience of AWS. This initiative is expected to accelerate domestic enterprise adoption of AI, opening further monetization avenues and driving positive investor sentiment.

Sustained liquidity and strong institutional participation provide a favorable environment for further share appreciation. With average daily volumes at 42 million shares, US exchanges have seen robust buying interest from both retail and institutional investors. This deep liquidity underpins market confidence, allowing Amazon's stock to react efficiently to catalysts while supporting continued upward trends.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.