Amazon stock rises to $208 as cloud and advertising businesses drive gains

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Dmytro Kharkov

13.05.2025

Amazon stock rises to $208 as cloud and advertising businesses drive gains — Amazon's stock is also benefiting from its diversified business model

Amazon.com Inc. (NASDAQ: AMZN) has shown a robust upward trend, with the stock now firmly above its 50-day and 200-day moving averages. Specifically, the 50-day moving average is positioned at $195.30, while the 200-day moving average stands at $185.10.

Volume has also surged, with 74.8 million shares changing hands, significantly above the 50-day average of 53.3 million. This volume spike is a strong indicator of widespread buying interest, as investors rush to capitalize on the rally. The Relative Strength Index (RSI) is approaching 70, which suggests that the stock is nearing overbought territory. While this may raise concerns about a potential short-term pullback, it is also a testament to the current buying pressure.

Support for Amazon's stock is now clearly established at the former resistance level of $200. If the stock were to face downward pressure, this level is likely to serve as a strong floor. Further support is visible at $195, a level that aligns closely with the 50-day moving average. On the upside, immediate resistance is located at $215, with a more significant resistance point at the 52-week high of $242.52. A successful breakout above $215 could pave the way for a retest of this high.

AMZN stock price dynamics (March 2025 - May 2025). Source: TradingView.

Momentum indicators further confirm the strength of Amazon's uptrend. The Moving Average Convergence Divergence (MACD) is in positive territory, with the MACD line well above the signal line, indicating sustained bullish momentum. Additionally, the Average Directional Index (ADX) has crossed 25, a threshold that signifies a strong trending market. Bollinger Bands are widening, reflecting increased volatility, but the stock price remains comfortably above the middle band, suggesting that buyers are firmly in control. These technical signals align with the stock's upward trajectory, reinforcing the outlook for continued gains.

Tariff relief and diversified revenue streams

The recent rally in Amazon's stock has been driven in large part by the temporary rollback of tariffs between the United States and China. This development has alleviated concerns about rising costs for Amazon’s retail operations, which are heavily reliant on goods sourced from China. Many third-party sellers on the platform depend on Chinese suppliers, and the tariff relief has significantly eased fears of supply chain disruptions and cost inflation.

Beyond the immediate impact of tariff relief, Amazon's stock is also benefiting from its diversified business model. The company’s cloud computing arm, Amazon Web Services (AWS), remains a highly profitable segment, despite recent concerns over slower growth rates. AWS has continued to generate substantial revenues, making it a critical driver of Amazon’s overall profitability.

Additionally, Amazon’s advertising business has become a significant contributor, generating approximately $56 billion in revenue last year. The company also boasts a $156 billion logistics operation that supports its vast network of third-party sellers. These diversified revenue streams provide Amazon with resilience, even in the face of potential challenges in its core retail segment.

Potential rise to $215–$220 in the near term

Given the current bullish technical indicators and the positive market sentiment surrounding Amazon, the stock appears poised for further gains. If the price maintains its momentum and decisively breaks above the immediate resistance level of $215, the next target would be $220. A breakout above this level could set the stage for a move toward the 52-week high of $242.52.

However, traders should also be aware of the potential for short-term volatility. If Amazon’s stock fails to sustain its position above $200, a pullback toward the $195 support level is possible. Such a decline, while not desirable for bullish traders, would still maintain the stock within an overall uptrend, as long as it stays above the 200-day moving average at $185.10.

Amazon's latest quarterly report showed strong revenue growth from its e-commerce and cloud services (AWS), but management issued a cautious outlook. Key concerns include inflation, rising labor costs, and potential supply chain disruptions from a U.S.-China trade war.

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