Amazon Stock Positioned for Growth Amid Strong Technicals and Undervalued Fundamentals

Technical Analysis

Amazon (AMZN) closed at $216.98 on June 9, 2025, marking a 1.60% gain on the day. The trading range was between $212.88 and $217.85, staying above both the 50-day moving average ($193.00) and the 200-day moving average ($202.41), signaling sustained bullish momentum. The RSI at 67 indicates the stock is nearing overbought territory but still has room for upside. The MACD remains positive at 6.12, supporting a continuation of the upward trend. Average true range (ATR) at $2.52 implies moderate volatility. Volume traded (38.06 million) was below the 49.59 million average, suggesting the latest move may lack broad conviction but still remains constructive. Immediate support sits near $210.12 with a more significant support zone around $191.10. There is no clearly defined resistance, with the 52-week high at $242.52 suggesting upside potential over the medium term.

For the next trading day (June 10, 2025), price action is expected to maintain its positive bias, likely testing the intraday range high near $217.85 or beyond, assuming no unexpected market shocks. Over the next week, momentum indicators and technical positioning suggest Amazon could ascend toward the mid-$220s, supported by continued strength above key moving averages and an absence of resistance until near-term highs.

Fundamental Analysis

Amazon’s market capitalization stands at approximately $2.30 trillion, placing it firmly among mega-cap technology leaders. The trailing twelve months (TTM) earnings per share (EPS) is $6.30, producing a price-to-earnings (P/E) ratio of 34.44. While this multiples premium indicates elevated growth expectations, it remains reasonable relative to the company’s dominant market position and ongoing expansion into high-growth sectors.

The discounted cash flow (DCF) intrinsic value estimate is roughly $29.00, substantially higher than the current price, implying that Amazon could be undervalued in terms of future free cash flow generation. This gap indicates significant long-term upside potential, especially given Amazon's diversified revenue streams from e-commerce, AWS, and burgeoning advertising initiatives.

Recent corporate developments highlight Amazon's strategic leap into the $100+ billion sports and TV advertising market—a segment that could materially enhance revenue diversification and margins over the coming years. AWS continues to strengthen its unique position in the artificial intelligence (AI) space with the Bedrock platform, which offers a model-agnostic marketplace approach distinguishing it from competitors heavily tied to single AI providers. Additionally, the inclusion of Amazon as a notable AI holding in Berkshire Hathaway's portfolio reflects strong confidence from one of investing’s most respected figures.

Earnings are expected on July 30, 2025, which could act as a catalyst for further stock movement depending on performance and forward guidance.

Intrinsic Value & Long-Term Investment Potential

The DCF-derived intrinsic value of approximately $29.00 per share (on a normalized scale) points to an intrinsic value well above the current market price of $216.98, implying undervaluation if one normalizes or annualizes future free cash flows properly within the context of Amazon’s scale. This is supported by strong fundamental pillars: leadership in e-commerce, commanding presence in cloud services, and aggressive expansion into AI and high-margin advertising.

Long-term growth is reinforced by Amazon’s adaptability and its ability to innovate in markets that disrupt traditional competitors. The expansion into AI marketplaces and TV advertising supplements core operations and could unlock substantial long-term revenue and profit growth.

Overall Evaluation

Amazon exhibits robust technical signals supported by strong fundamental growth drivers and a large market capitalization reflecting sustained confidence from institutional investors. The stock trades above key moving averages, carries a moderately high but justified valuation multiple, and shows intrinsic value indications of being undervalued based on discounted cash flows.

The consensus analyst target price median of $257.50 and a strong buy-to-buy ratio (80 buy, 8 hold, 1 sell) emphasize continued positive sentiment. Near-term price appreciation toward the $235–$270 range appears plausible.

Considering the technical momentum, fundamental strength, and intrinsic value assessment, Amazon fits the profile of a Buy candidate for investors seeking growth exposure in large-cap tech with meaningful long-term appreciation potential.