Markets.com Logo
euEnglish
LoginSign Up

Amazon Stock Analysis: Why Amazon (AMZN) is a Strong Momentum Stock

May 26, 2025
5 min read
Table of Contents
  • 1. Understanding Momentum Stocks
  • 2. Amazon's stock Recent Performance Highlights
  • 3. What are Amazon's AI-driven catalysts?
  • 4. Amazon's Strong Earnings Metrics
  • 5. Amazon's Competitive Advantages
  • 6. Future Growth Potential for Amazon's stock
  • 7. Conclusion

amzn.jpg

Amazon Stock Analysis: Amazon.com, Inc. (AMZN) has established itself as a dominant player in the e-commerce and cloud computing sectors.

As of now, it is considered a strong momentum stock, attracting the attention of investors looking for growth opportunities. This analysis delves into the factors contributing to Amazon's momentum, its recent performance, and why it may be a compelling addition to investment portfolios.
 


Understanding Momentum Stocks


Momentum investing is a strategy that focuses on stocks that have shown a consistent upward trend in price and earnings. Investors in momentum stocks believe that these trends will continue, driven by positive market sentiment and strong fundamentals. Amazon's recent performance aligns well with this strategy, making it an attractive option for momentum investors.
 


Amazon's stock Recent Performance Highlights


Price Movement
Amazon's stock has demonstrated impressive price action recently. Over the past week, AMZN shares have increased by 5.6%, and over the last four weeks, the stock has risen by 7.6%. In the past year, Amazon's stock has gained an impressive 54.7%. This upward trajectory is indicative of strong investor confidence and positive market sentiment.

Trading Volume
The trading volume for Amazon has also been noteworthy, with an average of 38,727,108 shares traded over the last 20 days. High trading volume often signifies strong interest in a stock, which can further fuel its price momentum.
 


What are Amazon's AI-driven catalysts?


Amazon's AI-driven catalysts are deeply embedded across its operations, driving innovation and efficiency. One of the primary catalysts is its recommendation algorithm, which powers personalized shopping experiences by analyzing customer behaviors and preferences. Additionally, Amazon leverages AI in its supply chain management with predictive analytics to optimize inventory levels and delivery routes, ensuring faster and more efficient logistics.

Alexa, the company’s AI-driven voice assistant, represents its efforts in smart home technology and natural language processing, creating new consumer touchpoints. Furthermore, Amazon Web Services (AWS) provides AI and machine learning tools that empower businesses globally to innovate and scale their operations. These AI initiatives continue to position Amazon as a leader in technology-driven solutions across industries.
 


Amazon's Strong Earnings Metrics


Earnings Estimates
One of the critical factors contributing to Amazon's momentum is its robust earnings outlook. In the last 60 days, 16 analysts have revised their earnings estimates upward for fiscal 2024. The Zacks Consensus Estimate for Amazon's earnings has increased by $0.44, now standing at $5.19 per share. This upward revision reflects analysts' confidence in Amazon's growth potential and operational efficiency.

Earnings Surprise
Amazon has also demonstrated a strong average earnings surprise of 25.9%. This metric indicates that the company has consistently exceeded analysts' expectations, further solidifying its reputation as a strong performer in the market.

Zacks Rank and Style Scores
Amazon currently holds a Zacks Rank of #2 (Buy), which is a strong indicator of its potential for continued growth. The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to help investors identify stocks with the highest probability of success.

Momentum Style Score
In addition to its Zacks Rank, Amazon boasts a Momentum Style Score of B. This score is derived from various factors, including one-week price changes and monthly percentage changes in earnings estimates. A strong Momentum Style Score suggests that Amazon is well-positioned to continue its upward trend, making it an appealing choice for momentum investors.
 


Amazon's Competitive Advantages


E-commerce Dominance
Amazon is the largest e-commerce provider in North America and is expanding its operations globally. Its vast product selection, competitive pricing, and efficient delivery systems give it a significant edge over competitors. This dominance in the e-commerce space is a crucial driver of its revenue growth and market share.

Cloud Computing Leadership
Amazon Web Services (AWS) is a leader in the cloud computing industry, providing a substantial portion of Amazon's revenue. The growth of cloud services has been accelerated by the increasing demand for digital solutions, and AWS continues to innovate and expand its offerings. This segment's profitability contributes significantly to Amazon's overall financial health.
 


Future Growth Potential for Amazon's stock


Expansion into New Markets
Amazon's ongoing expansion into new markets and sectors, such as healthcare and grocery delivery, presents additional growth opportunities. The company's ability to diversify its revenue streams can help mitigate risks associated with reliance on e-commerce and cloud services alone.

Technological Innovations
Amazon's commitment to technological innovation, including advancements in artificial intelligence and logistics, positions it well for future growth. These innovations can enhance operational efficiency and improve customer experiences, further driving sales and profitability.
 


Conclusion


Amazon's strong momentum, driven by impressive recent performance, robust earnings metrics, and a favorable Zacks Rank, makes it an attractive option for investors seeking growth opportunities. Its competitive advantages in e-commerce and cloud computing, combined with ongoing expansion and innovation, suggest that Amazon is well-positioned for continued success in the future.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. 

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
 


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Ghko B
Written by
Ghko B
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    1.93%
  • EUR/USD

    chartpng

    --

    -0.02%
  • Cotton

    chartpng

    --

    0.19%
  • AUD/USD

    chartpng

    --

    -0.07%
  • Santander

    chartpng

    --

    0.16%
  • Apple.svg

    Apple

    chartpng

    --

    -0.02%
  • easyJet

    chartpng

    --

    -0.54%
  • VIXX

    chartpng

    --

    0.00%
  • Silver

    chartpng

    --

    0.19%
Tags DirectoryView all
Most Popular ArticlesView all
  • Mar 10, 2025

    Trump stock price: Shares of Trump Media fell more than 11%

Table of Contents
  • 1. Understanding Momentum Stocks
  • 2. Amazon's stock Recent Performance Highlights
  • 3. What are Amazon's AI-driven catalysts?
  • 4. Amazon's Strong Earnings Metrics
  • 5. Amazon's Competitive Advantages
  • 6. Future Growth Potential for Amazon's stock
  • 7. Conclusion

Related Articles

Crypto CFD Trading for Beginners: Why Crypto CFDs May Suit Your Portfolio?

Crypto CFD Trading for Beginners: Cryptocurrency trading has gained immense popularity over the past few years, and with it, various trading methods have emerged.

Ghko B|4 days ago

PayPal Stock Analysis: What Drives PYPL Stock Price?

PayPal Stock Analysis: PayPal Holdings Inc. (NASDAQ: PYPL) has been a pivotal player in the digital payments landscape since its inception.

Frances Wang|4 days ago

Crypto Market Today: ADA/USD, XRP/USD, LTC/USD, TRX/USD

Crypto Market Today: the cryptocurrency market continues to evolve rapidly, attracting attention from various sectors due to its innovative technology and potential for transformation in finance.

Frances Wang|4 days ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The www.markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.