Amazon Just Reported Earnings – Is the Stock Still a Buy?

Amazon beat expectations, but slower AWS growth and cautious guidance left investors uncertain.

Amazon Earnings Recap – Q1 2025

Amazon AMZN delivered a mixed earnings report that showed solid execution but raised questions about future growth — particularly around AWS and guidance.

🔍 Key Highlights:

• Earnings: Beat on EPS, but missed on Third-Party Seller Services, a key segment for retail.
• Sales Growth: Net sales up +8.6% YoY, led by Online Stores and Subscription Services.
• AWS: Revenue up +17% YoY to $29.27B — slightly below expectations. This marks the first noticeable slowdown in two years.
• Operating Income: Jumped +20% YoY to $18.41B — beat expectations.
• Fulfillment Costs: Up +10% YoY to $24.59B — slightly above estimates.

Margins:

• Consolidated operating margin hit a record high for the 4th straight quarter.
• North America and international margins improved meaningfully.

Stock Reaction:

Despite strong margins, soft revenue and profit guidance led to an after-hours sell-off -2%.

Final Take:

📌 AMZN Rating: OVERWEIGHT 🎯 Short-Term Price Target: $200

Amazon remains a leader with strong profitability, but technically, we may be setting up a large Head & Shoulders pattern on the weekly chart — a bearish signal to watch closely.

Key Levels to Watch:

• Resistance at $200 could trigger selling pressure.
• A breakout above $208 would invalidate the bearish setup and open the door to a higher move and use $200 as support
• Based on forward growth, fair value is $210 — which aligns with historical multiples and growth projections.

"In summary, the fundamentals are strong, but guidance and technicals suggest short-term caution. Long-term, the setup remains bullish if key levels break."

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