Amazon Enters Correction Zone-Time to Panic, or to Load Up?

Shares of Amazon.com Inc. (NASDAQ: AMZN) have spent the past two weeks under pressure, sliding from record highs near $260 at the start of the month to almost $215 last week. The good news for investors is that despite that sharp move, the stock hasn’t broken any key technical levels, and momentum is already improving. 

It appears that much of the selling was driven by a broader souring of sentiment, especially in tech stocks. However, giving up more than 15% of gains without much defense from the bulls is never a good look. The big question now as we head into Thanksgiving weekend is whether this pullback marks the start of something deeper or a rare opportunity to buy one of 2025’s best-performing mega-caps at a discount.

A Healthy Correction

Before the selloff, Amazon had rallied as much as 60% from April, a run that was bound to attract profit-taking, especially after the earnings inspired a gap-up in late October. 

The current drop officially puts the stock in correction territory, but it hasn’t come close to testing, let alone breaking any lows.

Technically, the setup looks more like a cooling phase than a collapse, and all the major moving averages and trend lines are intact. 

Notably, trading volume during the decline has stayed moderate, with the most volume in recent weeks on green days, and no signs of panic selling. 

The Fundamentals Remain Strong

Much of this strength stems from Amazon’s latest earnings report at the end of October, which confirmed that its growth story is alive and kicking. As MarketBeat highlighted at the time, all of the company’s major revenue engines are firing on all cylinders, and the outlook is bright heading into 2026.

Margins are trending higher, helped by cost discipline and automation, and cash flow continues to grow. The broader narrative hasn’t changed: Amazon is still a $2.5 trillion growth story that dominates every market it operates in and has ample room to grow. From a valuation standpoint, the recent pullback also made it more attractive to investors on the sidelines, and it’s perhaps no surprise that shares have been snapped up quickly so far this week. 

Analysts Back the Rebound

It’s also no surprise that Wall Street is treating this correction as a buying opportunity as well. 

Rosenblatt Securities, for example, reiterated its Buy rating on Tuesday along with its $305 price target, implying more than 30% upside from current levels. 

This echoed the move by BNP Paribas on Monday, which upgraded the stock to Outperform, and dozens of other analysts who’ve been calling the stock a red-hot buy for months.

With a street-high analyst price target of $360, the consensus on Amazon underscores widespread confidence that this is a temporary pause, not the beginning of a breakdown.

Technical Setup Looks Constructive

Recent selling has also improved the technical setup. Having been in overbought territory earlier in November, Amazon’s Relative Strength Index (RSI) has cooled nicely towards the low 40s, helping to reset momentum without causing cracks in the broader trend. 

Support around the $210-215 mark has been tested multiple times in recent months without breaking, suggesting a firm base has formed. A close above $240 in the coming sessions would confirm that buyers are back in control and could pave the way for a retest of $260 highs before year-end.

Broader macro sentiment will play a big part in that happening, and for now, at least, it’s looking good. The S&P 500 has been rallying hard since Monday morning, risk appetite is opening up once again, and rate-cut expectations are growing.

Even if volatility persists in the near term, it’s hard to bet against Amazon’s long-term trajectory. Few companies have such a combination of scale, innovation, and operational discipline. This correction may look sharp on paper, but it seems likely that future investors will look back on it as a golden entry opportunity ahead of fresh highs into 2026.

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The article "Amazon Enters Correction Zone—Time to Panic, or to Load Up?" first appeared on MarketBeat.