Amazon.com Inc. (NASDAQ: AMZN) stock is currently down about 20% from its all-time high in February, placing it in bear market territory. While some of this decline is tied to the broader market’s downturn, the drop seems increasingly irrational given the company’s record-breaking earnings and continued long-term growth.

The stock is now back to levels seen last summer and not far above where it traded in 2021. However, just as the S&P 500 appears to have stabilized in recent sessions, so has Amazon.

The stock has held firm above its two-week low, suggesting that sellers may be starting to run out of momentum. This and the fact that the broader market moved higher after yesterday’s much-anticipated update from the Fed suggests a turnaround has started.

Earnings Continue to Set Records

Focusing on Amazon’s strengths first, its latest earnings report from early February was nothing short of spectacular. The company smashed analyst expectations on both headline numbers, delivering both its highest-ever revenue print and most profitable quarter in history. The report also saw its quarterly profit surpass $20 billion for the first time ever, with that figure now up more than 80% year-over-year. 

This wasn’t just a one-off result. Amazon has now beaten expectations for multiple consecutive quarters, showing resilience even as macroeconomic pressures have weighed on other tech giants.

This strong performance was driven by continued strength in AWS, its high-margin cloud computing business, and a booming digital advertising segment, which are both seen as core revenue drivers that are going nowhere. Despite economic uncertainties, Amazon has continued expanding its business lines, improving its margins, and growing its market share.

Wall Street Is Still Bullish on Amazon

It’s no surprise that analysts continue to see Amazon as one of the strongest players in mega-cap tech despite the recent pullback in shares. Several major firms, including Citigroup, Canaccord Genuity Group, and Loop Capital, have reiterated Buy ratings in recent weeks.

Loop Capital, in particular, sees substantial upside with its $285 price target. From where Amazon closed on Wednesday night, that implies a nearly 50% upside. For a $2 trillion tech giant, that kind of potential is rare, highlighting the disconnect between the stock’s current price and its longer-term growth trajectory.

One key reason for analysts’ confidence is Amazon’s ability to capitalize on AI and cloud computing growth. The company has continued to enhance AWS’s AI-driven infrastructure, positioning itself as a critical player in enterprise cloud computing.

Additionally, Amazon’s Prime ecosystem remains a dominant force in e-commerce, giving the company a recurring revenue stream that has helped drive profits even as retail margins tighten.

Technical Indicators Suggest the Worst May Be Over

The technical setup also suggests now is a great time to consider an entry. Amazon’s relative strength index (RSI) recently dipped as low as 26, signaling extreme oversold conditions. While it has since rebounded somewhat, currently sitting at 36, this still suggests the stock is oversold and has only just started its bounce back. 

Simultaneously, the MACD is on the verge of a bullish crossover, a well-regarded technical indicator that often suggests a shift in momentum is starting to take place. If the broader market can continue to stabilize over the coming sessions, these indicators suggest that Amazon may soon see its stock bought up as one of the more attractive stocks out there.

Investors watching for a technical setup that supports a bounce should keep an eye on whether Amazon continues to hold above recent support levels. If buyers step in at these prices, the upward momentum should gather some pace.

Why This Could Be the Best Time to Buy Amazon Stock in Years

Amazon’s stock has been hit hard, but the underlying business remains as strong as ever. The company continues to post record revenue and is almost universally well-regarded by Wall Street.

With the stock trading down 20% despite the company posting record quarterly numbers, this is starting to look like one of the best entry points in years.

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