3 reasons why this may be ready to break out News ad

Amazon.com Inc. NASDAQ: Amzn Closed last week, a little under 190 dollars Mark, after the long -awaited Income report This, overcoming the expectations for both the revenue and the EPS, came with a careful leadership, which initially held the shares from the gap above.

Nevertheless, the price action of shares on weekends tells another story. After a short fall on Friday morning, The Amazon bounced And he finished a strong session, finishing about a day. Such a change is often a sign that buyers enter, and with shares still more than 20% of February record maximumThe setting begins to look convincing.

Here are the three reasons why Amazon can prepare for a serious rally in the coming week.

Amazon defeated the expectations of analysts

Q1 results were hard in all directions. Revenue increased by almost 9% compared to the same period last year, easily beaten the estimates of consensus 580 million dollarsWhile their printing Gaap EPS was also hot. The core Amazon Web Services (AWS) Department, the most profitable, published by the company 17% of annual growthDespite the oncoming wind from tariffs and wider uncertainty of macros.

It is important that Operational income grew by 221% From the same quarter a year ago, another sign of an improvement in the history of Amazon. Even with the fact that the company is faced with pressure from foreign exchange influences and the developing world trade policy, the ability to publish such numbers shows why Amazon continues to stand out in Big Tech.

The company also confirmed its commitment to scaling the advantages and speeds, the cornerstones of its retail domination, which helped it become stronger from past periods of uncertainty. For investors, it is clear that Amazon continues to perform at a high level, and Wall -stroke took note.

Analysts in the vast majority

One of the most powerful signals for potential growth is a huge volume of bull analyst. During April and early May, companies such as UBS, Oppenheimer and Goldman Sachs, everyone confirmed their Buy or overweight on stocks.

Only last Friday, such as the Royal Bank of Canada and Piper Sandler, also issued bull calls, with fresh prices in the range of up to $ 280, which implies as much as the amount as 45% growth from current levels.

Even analysts who slightly cut their goals, such as Mark Mahaney from Evercore ISI, continue to consider Amazon as their best choice with great capitalization. Their thesis depends on AWS, accelerating in the back half of the year, helping by facilitating the restrictions of supplies and the growing demand for infrastructure associated with AI.

Add to a potential increase in the price of subscription and the growing possibility of monetization for Alexa and Project Kuiper, and you have a long list of fair wind supporting the bull case.

It is also worth noting that the Amazon rating remains convincing in comparison with other megaling technologies. WITH Forward p/e. Still sitting below historical average values ​​and below many peers, the case for multiple expansion is easy to do if the mood improves, and the pulse begins.

Technical suggests that the tide can roll over

As in the case of other technical giants, from a technical point of view, the recent Amazon performance reassures. There are already shares bounced 17% From their early April, many years of minimum, and, more importantly, they invest a series of large maximums and higher minimums. This model, especially after a long trend, often signals a change in pulse.

Stock Relative force (RSI) index He flew steadily from the resold territory, and the MACD showed consistent bull signals from the bottom of April. The volume in the days of UP was also noticeably stronger than in Down Days, which is confirmed by the case when institutional buyers begin to restore positions.

Combine these technical developments with Amazon Strong earnings Print and Analytic supportAnd you look at the stock that can be wound for a breakthrough.

One note of caution

Despite all this optimism, the Amazon leadership in the current quarter was careful, and this is that investors should watch. Control Income 2 quarters is predicted from From 159 to 164 billion dollarsApproximately in accordance with the consensus, but at the lower end.

Despite the fact that these explanations are reasonable, they may not be enough to inspire immediate confidence among more skeptical investors, especially considering how much time it will take for the shares to restore their basis.

If Amazon cannot rely on the current pulse over the next few sessions, this can signal that Wall is stroke Still, it still does not dare to completely interrogate the reserves above.

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