Wall Street's Sleeping Giant: Is Amazon About to Wake Up?

Shares of Amazon.com Inc. (NASDAQ: AMZN) closed Monday’s session just above $230, right around where they were back in January. Despite logging a 60% rally at one point in the months in between, the tech giant is now on track to finish roughly flat for 2025. For long-term investors who’ve watched the stock grind sideways since summer, that might seem disappointing, particularly when other mega-cap tech names have been continuing to set fresh highs. 

But for those of us on the sidelines thinking about opening a position, this consolidation could be the best setup Amazon has offered in years. A year of quiet trading has left it cheaper than many major tech stocks, even as its fundamentals continue to improve. Let’s jump in and see why “boring” might actually mean “coiled” in this instance. 

Amazon’s Sideways Chart Signals Strength, Not Stagnation

The temptation is to read Amazon’s sideways performance as stagnation, but that misses the bigger picture. When a company delivers consistently strong earnings yet its share price doesn’t move, it’s often a sign of consolidation, rather than fading momentum. 

While many of its peers in the tech industry have started to have their stretched prices and valuations questioned, Amazon avoided that kind of scrutiny. Compare its current technical setup with that of other giants: Apple Inc. (NASDAQ: AAPL) was recently trading 6% above its 50-day moving average, while Alphabet Inc. (NASDAQ: GOOGL) was 19% above, versus Amazon, which was just 2.5% higher. That gap speaks volumes about which stocks might be due for a breather, and which ones are primed to catch up.

It also matters that this consolidation comes amid rising market optimism. After wobbling through much of November, the S&P 500 has suddenly popped  5% in little more than a week. If this risk appetite continues into 2026, Amazon’s relatively subdued chart could give it more room to run if equities are about to start the next leg of the rally. 

Analysts Double Down on Bullish Amazon Stock Forecasts

It would be worrying if the tide had started to shift among analysts, who have spent much of 2025 calling Amazon a red-hot buy, but if anything, this trend is only getting stronger. A fresh update from Oppenheimer this week underscored the potential of the stock. 

On Monday, Dec. 1, the team there boosted its price target on Amazon to $305, implying almost 30% upside, and called for “significant upside” from the company’s AWS unit in the coming years. It’s now secret that AWS remains Amazon’s crown jewel and the main driver of its long-term profitability. 

The division’s accelerating capacity expansion, along with AI-driven efficiencies, suggests its best growth years may still be ahead. With cloud demand continuing to grow and Amazon’s market position quite strong, Oppenheimer’s bullish stance reflects a broader recognition that the company’s most profitable business line is still gaining momentum.

And as MarketBeat has been highlighting in recent weeks, while this is just one of many optimistic stances taken by analysts in recent months, it isn’t even the most bullish. That title can go to Loop Capital, which gave Amazon a fresh street-high price target of $360 last month, suggesting more than 50% upside from current levels. This isn’t exactly the type of call you would see being made on a stock that was on the verge of turning over. 

Amazon Stock Offers a Strong Risk/Reward Setup Into 2026

Another attraction to Amazon is its valuation, which the stock’s sideways action has favorably impacted. Even though earnings have been rising steadily, Amazon’s price-to-earnings (P/E) ratio is now lower than at any point in 2024, and cheaper than much of the last decade,

That relative discount looks even starker when set against peers still priced for perfection. Many of the hottest AI-related names have very little room for mistakes heading into 2026, baggage Amazon doesn’t carry. This makes the current setup an appealing risk-reward trade in its own right. For investors thinking about getting involved now as we round the last corner of the year, 2025’s flat performance might end up being a gift.

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The article "Wall Street’s Sleeping Giant: Is Amazon About to Wake Up?" first appeared on MarketBeat.