Why Is Amazon Stock No Longer Bullish?

Quick overview

Amazon (AMZN) stock rallied this week in response to the trade deal agreement between China and the United States, adding 18% to its value and reached a peak of $213 before its rally ended.

Amazon stock fell off by Thursday, dropping precipitously after its bullish upswing. The stock is down 2.43% over the last 24 hours after it stagnated for almost two days. Why has Amazon stock fallen off after doing so well?

Much of the drop can be attributed to a retreat after the bull trend, where the price rose so fast over such a short period of time that it only made sense that it would fall somewhat.

Is Amazon Stock Still Promising

Despite the drop Thursday, this is still a very strong stock. Over three months of economic tightening and high tariffs, Amazon stock lost 11.5% of its value. That might have been devastating if it had not gained back all of that lost value and more this week. Amazon’s stock is showing its resilience and longevity, and there is no doubt that it represents a good investment opportunity for those looking for a high performing long term stock.

Amazon performed well in its recent earnings statement, showing a 5.4% blended return on retail for the last quarter. That was a record high for the company, and its cloud division also performed very well. Amazon stock is set to keep on climbing as a result of the Chinese/American trade agreement, despite its small setback today. We would urge investors to sit tight with this one for a while longer and see how the pause on tariffs positively affects its value.

This may not be the strongest performing stock this week, but it is one that should fluctuate in a way that is easy on investors, rarely losing much value even when most of the market trends down. Compare Amazon to one of its major competitors- Target (TGT). That retailer lost 28% of its stock value over the last three months and has only rallied by 8% after the trade agreement, losing much of that in the last couple of days.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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