AMWL Should I Buy
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American Well Corp (AMWL) is not a strong buy at the moment for a beginner investor with a long-term strategy. The company is facing declining financial performance, bearish technical indicators, insider selling, and cautious analyst sentiment. While the stock has shown a slight post-market price increase, there are no strong positive catalysts or trading signals to justify an immediate investment.
The technical indicators for AMWL are bearish. The MACD is negative and contracting, the RSI is neutral at 41.014, and the moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 4.524, with resistance at 4.898 and support at 4.149. Overall, the technical setup suggests no clear upward momentum.
Additionally, there is a 60% chance of a modest 4.11% gain in the next month based on historical candlestick patterns.
Gross margin also decreased by 3.44%. Insider selling has increased by 141.83% over the last month. Analysts have lowered the price target from $10.50 to $6, and the stock faces headwinds from policy and reimbursement challenges in the healthcare sector. No recent congress trading data or influential figure transactions were reported.
In Q4 2025, AMWL reported a revenue decline of 22.1% YoY to $55.31 million, a net income loss of $24.92 million (down 41.57% YoY), and an EPS of -$1.52 (down 45.13% YoY). Gross margin also dropped to 35.88%, down 3.44% YoY. The company provided a cautious financial outlook for 2026.
Morgan Stanley recently lowered its price target for AMWL from $10.50 to $6 while maintaining an Equal Weight rating. Analysts see challenges in the healthcare sector, including policy, reimbursement, and utilization headwinds, which could impact the company's performance in 2026.
