Amazon stock has fallen below $200 again. It’s down 11% this year, part of a broader market selloff. The question is simple: Is this a chance to buy?
Market Sentiment & Amazon’s Strength
Amazon trades 20% below its 52-week high of $242. The market is shaky, but Amazon remains strong. Last year, the company reported record revenue of $637.96 billion. Sales are expected to climb over 9% in 2025 and 2026, pushing revenue past $700 billion.
Amazon leads in e-commerce and cloud services. Now, it’s making a strong AI push. In December, it released the Trainium 2 AI chip. The new chip boosts machine learning power and challenges giants like Nvidia and AMD. AI is the future, and Amazon wants a bigger piece of it.
Analyst Ratings & Price Target
Wall Street still likes Amazon. Out of 51 firms, most rate it a “Strong Buy.” The average price target stands at $268.66. That’s over 30% upside from where the stock trades today.
Valuation: Cheaper Than Before
Amazon isn’t just growing, it’s also cheaper than it has been. The stock trades at 31.5 times forward earnings, far below its five-year peak of 161.3X and below its median of 65.1X. That makes it more in line with the broader S&P 500.
The Verdict
The market is volatile. Nasdaq is falling. Timing the bottom is hard. But Amazon is still Amazon. Its AI ambitions, cloud dominance, and steady growth make it a long-term winner. Buying now may feel risky, but history rewards those who bet on strong companies when others hesitate.
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