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AMZN 4-hour chart showing Amazon at 254.92 after fading the post-earnings spike to 288

Amazon Stock Forecast: AMZN at 254.92 Under 256.20

By Saqib Iqbal2 min read
  • AMZN trades at 254.92, down 1.87% and back below the 256.20 average it held through most of August.
  • AWS grew 37% in the second quarter, its fastest in eighteen quarters, yet third-quarter guidance implies growth roughly half that rate at the group level.
  • 250.48 is the level that decides the next move: the slowest average, and the last thing still beneath price.

Fundamental Analysis: Amazon (AMZN)

Amazon's second quarter was, on the operating numbers, unambiguously strong. Net sales reached $200.6 billion, up 20%, and operating income rose 43% to $27.5 billion. AWS was the engine: $42.2 billion in revenue, up 37%, described by management as the segment's fastest growth in eighteen quarters and now running at a $169 billion annualised rate. Advertising added 26% growth on top.

The counterweight sits in the guidance and in the headline profit figure. Third-quarter net sales are guided to $197.0-$202.0 billion, or 9-12% growth, a marked step down from the 20% just delivered, and operating income to $22.5-$26.5 billion, which brackets a sequential decline at the midpoint. Reported net income of $62.6 billion, or $5.75 a share, was flattered by $53.4 billion of non-operating gains on the company's Anthropic stake, an item that tells you nothing about the retail or cloud businesses and will not repeat.

That combination explains why a good quarter has produced a stock trading below where it opened after the print. The market has taken the AWS acceleration as fact and the guidance as the forward signal, and until the third quarter is reported the burden of proof sits with the company rather than with sceptics.

Technical Analysis: Amazon (AMZN)

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The 4-hour chart is dominated by the late-July earnings gap, which lifted the shares from roughly 240 to 262 and then extended to a spike high near 288. Everything since has been a controlled give-back: a lower high in mid-August, a steady drift through the averages, and a current price of 254.92 that has erased the entire post-gap advance. The 260.25, 259.66 and 256.20 averages now sit above price and have rolled over.

Resistance is the 256.20 line first, then the 259.66-260.25 band where two averages converge and where the August rebound attempts failed. Support is 250.48, the slowest average and the only one still below the market, with the pre-earnings 240 shelf beneath that. A close under 250.48 would invalidate the read that this is a pullback within an uptrend and turn the whole earnings gap into a failed breakout.

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