Stock Chart Expert Explains Why Amazon.com (AMZN) Will Jump

We recently published 10 Stock News You Should Pay Attention To. Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks to watch in September.

Carter Worth from Worth Charting said in a recent program on CNBC that Amazon is poised to see a rally. The analyst gave the example of Alphabet, which recently broke out after seeing declines, especially during the tariff-related selloff.

“And of course Google just now breaking out but something like Amazon has not,” Worth said. “So here for instance is a chart of what Google did. We know it drops about 30% during the tariff swoon, recovers to that level and then bang, right, a news related breakout, the gap up. Now take a look by contraction at Amazon. Amazon really is a laggard and that is either a problem or an opportunity. I think it’s the latter. It’s an opportunity. So a final chart of this particular effort—those arrows are a judgment, right? Someone else could say no, it’s poor relative strength, it’s not going to make the new high, but I think that it does, and so this would be just another one to join the general move above the pre-tariff sell-off. Highly, of course, Apple is not anywhere close, but every day another one seems to come to life, and I think Amazon is one that’s poised to do just that.”

Pershing Square Holdings stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2025 investor letter:

“Earlier this year, we initiated a position in Amazon.com, Inc. (NASDAQ:AMZN), a company we have long studied and admired. Amazon operates two of the world’s great, category-defining franchises: its Amazon Web Services (AWS) cloud business and its e-commerce retail operations. Both AWS and the company’s retail operations are supported by decades-long secular growth trends, occupy dominant positions in their respective markets, and have significant long-term opportunities for margin expansion. Moreover, despite operating in different industries, both businesses share the core tenets of Amazon’s ethos: a relentless focus on the customer, leveraging scale to be the lowest-cost provider, and continually reinvesting to improve their value proposition.

AWS, which accounts for approximately 60% of Amazon’s total profits, is the leader in the highly concentrated cloud hyperscaler market with over 40% market share. As the first mover in the space, AWS is exceptionally well-positioned to capitalize on the multi-decade shift of IT workloads from on-premise to cloud solutions. Currently, only about 20% of IT workloads are estimated to be hosted in the cloud, a percentage that is expected to steadily increase and eventually invert over time. Similarly, Amazon’s retail business is powered by strong secular growth in e-commerce adoption. In the U.S., for example, e-commerce sales penetration has doubled in the past decade yet still accounts for less than 20% of total retail sales. Within this rapidly expanding market, Amazon holds a leadership position by offering consumers the widest selection, the lowest prices, and the fastest delivery, all enabled by a one-of-a-kind logistics network that fulfills over $700 billion in gross merchandise value annually…” (Click here to read the full text)

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.