Amazon stock rises 3.1% after Q1 profit tops estimates
The company anticipates revenue between $159 billion and $164 billion.
As of May 2, Amazon stock is trading at $190.20, up 3.1% in 24 hours. The stock showed notable buying interest following a better-than-expected earnings report, but the rally lost steam near technical resistance levels.
Trading volume was also above average, indicating heightened investor activity around the earnings release. Amazon (NASDAQ: AMZN) gained more than 3% as investors reacted to the company's strong first-quarter results. Despite this rebound, the stock remains down over 13% year-to-date and is struggling to maintain momentum amid macroeconomic uncertainty and cautious forward guidance.
From a technical perspective, Amazon's share price is currently trading below both its 50-day moving average near $195 and its 200-day moving average around $200, which suggests bearish sentiment in the medium term. Immediate resistance levels are situated at $193, with a more formidable ceiling around $200. These levels are crucial for the stock to break in order to reverse the prevailing downtrend.
AMZN stock price dynamics (March 2025 - May 2025). Source: TradingView.
On the downside, support is observed at $185, with a critical threshold near $180. A breach of this lower support could signal further weakness and attract short sellers. The Relative Strength Index (RSI) is hovering near 50, reflecting a neutral stance and indicating that the stock is neither overbought nor oversold at current levels. Bollinger Bands are moderately wide, suggesting ongoing volatility and uncertainty about near-term direction.
Q1 earnings beat but forward guidance and tariffs weigh
Amazon's financial results for the first quarter of 2025 surpassed Wall Street expectations, reporting earnings per share of $1.59 on revenue of $155.7 billion. Analysts had forecast $1.37 EPS and $155.2 billion in revenue, making the beat particularly notable in a tough economic climate. The operating income stood at $18.41 billion, again above consensus estimates, highlighting strong operational execution.
Amazon Web Services (AWS), the company’s high-margin cloud division, posted revenue of $29.3 billion, marking 17% year-over-year growth. However, this figure slightly missed analyst projections of $29.45 billion, and the miss has raised fresh concerns about the trajectory of cloud growth. Advertising services, by contrast, saw robust expansion, reinforcing Amazon’s growing role as a digital advertising powerhouse.
However, the market was disappointed by Amazon’s second-quarter guidance. The company anticipates revenue between $159 billion and $164 billion, and operating income ranging from $13 billion to $17.5 billion. The midpoint of this forecast sits below analyst expectations, which has contributed to post-earnings volatility despite the Q1 beat.
Outlook: short-term pressure, medium-term potential
Looking ahead, Amazon’s stock is likely to face short-term downside pressure as investors digest the softer Q2 guidance and geopolitical uncertainties. If the stock fails to maintain support at $185, a drop toward $180 becomes increasingly likely. A decline below $180 could open the door to further losses, especially if macro headwinds intensify.
On the flip side, a sustained break above $193 would pave the way for a potential retest of the $200 level, which aligns with the 200-day moving average. Such a move would likely require either a positive shift in macro sentiment or signs of accelerating AWS growth.
Wall Street analysts remain strongly bullish on Amazon, with all 26 tracked by Visible Alpha maintaining a "buy" rating. The consensus 12-month price target of $241 implies over 30% upside, driven by confidence in AWS, advertising growth, and operational efficiency.
