Amazon’s Stock Performance: A Comparison with the Market

Amazon.com, Inc. (AMZN), with a significant market cap of around $2 trillion, stands as a leader in technology and e-commerce, based in Seattle, Washington. Founded by Jeff Bezos in 1994, it transitioned from an online bookstore to the world’s largest online retailer, offering a wide range of products and services including electronics, apparel, cloud computing, and entertainment.

Comparative Performance Over the Past Year

Over the past 52 weeks, AMZN’s shares have not kept pace with the broader market. The stock has climbed only 5.4%, while the S&P 500 Index ($SPX) has increased by 10.6%. Year-to-date, Amazon’s stock has declined by 15.9%, contrasting with a lesser fall of 5.3% in the S&P 500.

Further Lag Behind Competitors

A closer examination reveals that AMZN has also fallen short compared to the Invesco NASDAQ Internet ETF (PNQI), which saw an 18.3% rise over the past year.

Market Reactions and Recent Developments

On April 23, Amazon’s shares experienced a surge of about 5%, following discussions that the Trump administration might consider lowering tariffs on Chinese imports. Treasury Secretary Scott Bessent indicated an impending “de-escalation” of trade tensions with China, which positively influenced investor sentiment.

Analysts’ Projections and Ratings

For the fiscal year ending December 2025, analysts project AMZN’s earnings per share (EPS) to grow by 10.9% year-over-year, reaching $6.13. The company has a strong history of earnings surprises, consistently exceeding consensus estimates in the last four quarters.

Among the 52 analysts covering Amazon, the consensus rating is a “Strong Buy,” comprised of 46 “Strong Buy” ratings, five “Moderate Buys,” and one “Hold.” However, this rating is down from a month ago when there were 47 analysts recommending a “Strong Buy.”

Price Target Adjustments

On April 28, UBS analyst Stephen Ju revised Amazon’s price target down to $253 from $272 ahead of its Q1 2025 earnings report, while retaining a “Buy” rating. This adjustment reflects broader concerns, including potential demand impacts linked to tariffs, as many U.S. goods rely heavily on imports.

UBS now anticipates Amazon’s global gross merchandise volume (GMV) growth to be 7.6% for 2025, down from a previous estimate of 10.1%. For 2026, they forecast growth at 7.2%, with a rebound expected to 10% in 2027.

The average price target for AMZN stands at $246.06, representing a potential upside of 33.4% from current levels. The highest target from analysts is $290, implying an even greater upside of 57.2% from current prices.

On the date of publication, Kritika Sarmah held no positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.