Amazon Stock Market Predictions 2025

Cloud Revenue and Market Reactions

Amazon’s cloud division, AWS, reported a 19% year-over-year increase in Q4 revenue, reaching $28.79 billion. However, this figure fell short of Wall Street expectations of $28.87 billion. CEO Andy Jassy cited supply chain constraints in acquiring necessary chips as a significant factor limiting AWS’s growth.

The company’s 2025 revenue outlook also signals caution, with executives highlighting foreign exchange rate fluctuations as a major headwind. Amazon shares, which had gained over 40% in 2024, now face a mixed outlook as the broader stock market reacts to these developments. As part of ongoing stock market predictions, analysts are closely watching how these challenges could impact Amazon’s valuation throughout the year.

Technical Analysis: Key Support and Resistance Levels

Amazon shares have been forming a rising wedge pattern since mid-2024, finding support multiple times along the lower trendline and the 50-day moving average. The stock reached record highs earlier this year, but the Relative Strength Index (RSI) indicates declining momentum, raising concerns of potential pullbacks.

Support Levels to Watch

• $230: A crucial support level aligning with the rising wedge pattern’s lower trendline. Investors will be watching whether this level holds firm.
  
• $216: A significant area on the chart corresponding to previous highs and lows from November 2024 to January 2025.
  
• $200: A psychological round number that could serve as a strong accumulation point near the 200-day moving average.

Understanding these levels is essential for anyone following stock market predictions, as they provide insight into potential buying or selling opportunities.

Measured Move Price Target for 2025

If Amazon resumes its long-term uptrend, analysts project a potential price target of Amazon stock price today, based on the measured move technique. This target is derived from the depth of the rising wedge pattern added to its upper trendline. According to stock market predictions, a breakout above key resistance levels could trigger a new bullish phase.

Stock Market Predictions for Amazon in 2025

• Bullish Scenario: A break above $240 could lead to renewed momentum, pushing Amazon’s stock toward the projected $290 price target. Many stock market predictions suggest that continued expansion in cloud computing and AI services could support this growth.
  
• Bearish Scenario: Failure to hold the $230 level may result in a deeper correction, with a potential decline to $216 or lower. Analysts monitoring stock market predictions believe that external economic factors, such as inflation and interest rate policies, could heavily influence Amazon’s stock movement.

Final Thoughts

As Amazon stock continues to react to market conditions in 2025, investors should monitor key support and resistance levels closely. With cloud revenue growth facing headwinds and macroeconomic factors influencing stock trends, maintaining a well-informed approach is crucial. By keeping up with stock market predictions, traders can better navigate potential price fluctuations and investment opportunities.

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.