Can Amazon Stock (AMZN) Recover After 30% Drop? Key Levels and Outlook

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Amazon stock price tumbled almost 10% lower yesterday, and is 26% lower from the top, but could there be a reversal soon?

Amazon Stock Breaks Down After Strong Rally

After a two-year rally, Amazon (AMZN) has dropped over 26% from its $242.52 peak, hitting the lowest levels since September. The sharp decline began in early February, accelerated by concerns over U.S. trade tariffs, which could impact Amazon’s e-commerce revenue.

Amazon Stock Chart Weekly – The 50 SMA Has Been Broken

• Down 9% yesterday alone, AMZN opened with a bearish gap and closed below the 50-week SMA (yellow) – a key support during March.

• The stock failed to hold above the 200-day SMA (purple), which acted as support during August 2024’s correction.

• The next key level is the 100-week SMA (green) near $170, now a potential support zone.

Amazon Share Price Chart Daily – The 200 SMA Has been Broken

Broader Market Pressure Adds to Amazon’s Decline

• The S&P 500 fell 5% and Dow Jones (DJIA) dropped 4% yesterday, deepening tech stock losses.

• Amazon is also facing political headwinds after submitting a bid for TikTok’s U.S. operations, but low offer concerns may hinder approval.

Insider Activity and Future Projects

• On April 1, 2025, Amazon Stores CEO Douglas Herrington sold 2,500 shares at $187.99, signaling insider movement.

• Amazon is also preparing for the Project Kuiper satellite launch, deploying 27 broadband satellites, a major step toward global internet coverage.

Long-Term Fundamentals Still Strong

• Amazon remains a dominant e-commerce leader, with $389 billion in North American sales in 2024.

• E-commerce still holds under 20% of total U.S. retail sales, showing room for continued growth.

Conclusion

Amazon’s 26% drop reflects short-term technical breakdowns and macro pressures, especially trade-related concerns. However, long-term growth drivers like e-commerce expansion and satellite initiatives remain intact. Watch $170 as key support — a rebound is possible if sentiment stabilizes.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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