AMZN Should I Buy
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Amazon.com Inc (AMZN) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. Despite short-term price pressure due to higher capex guidance and margin concerns, the company's strong AWS growth, diversified business expansion, and heavy congressional buying indicate a positive long-term outlook. The current oversold technical condition also provides a favorable entry point.
The stock is currently oversold with an RSI of 9.3, indicating a potential rebound. MACD is negative and expanding, suggesting bearish momentum, but the stock is trading near key support levels (S1: 202.874, S2: 191.359), which could provide a strong base for recovery.
Strong AWS growth (24% YoY in Q4 2025).
Diversified business expansion into advertising, streaming, and healthcare.
Heavy congressional buying with 4 purchase transactions totaling $10M-$25M in the last 90 days.
Positive long-term analyst sentiment with most ratings maintaining Outperform or Buy.
Higher-than-expected capex guidance of $200B for 2026, leading to concerns about free cash flow burn.
Weak Q1 2026 margin guidance and international margin performance.
Short-term bearish momentum as reflected in recent price decline (-2.20% regular market change).
Amazon reported strong Q4 2025 financials with revenue up 13.63% YoY to $213.39B, net income up 5.94% YoY to $21.19B, and EPS up 4.84% YoY to $1.95. Gross margin also improved to 48.47%, up 2.39% YoY, indicating healthy operational efficiency.
Analysts remain constructive on Amazon's long-term prospects despite short-term concerns. Recent ratings include multiple Buy and Outperform ratings, with price targets ranging from $260 to $310. Analysts highlight AWS growth acceleration, strong retail performance, and AI-driven investments as key positives, while acknowledging margin pressures and capex concerns.
