Amazon.com Inc (NASDAQ:AMZN) shares are falling Thursday, even after Rosenblatt initiated coverage on the stock with a Buy rating and $335 price target. Here’s what you should know.
- Amazon.com stock is facing resistance. Why is AMZN stock trading lower?
Rosenblatt Starts Amazon at Buy, Cites Underappreciated AI Position
Rosenblatt analyst Scott Devitt began coverage of Amazon, initiating a Buy rating and a $335 price target that implies roughly 26% upside from the stock’s current price of around $262.50.
Devitt argued that Amazon’s standing in artificial intelligence isn’t getting enough credit from the market. AWS sits at the center of that thesis: he expects the cloud unit to close out 2026 growing 45%, outpacing the Street’s 38% estimate, and to clear $335 billion in annual revenue by 2028. That forecast builds on AWS’s 37% year-over-year growth in the second quarter, its fifth straight quarter of accelerating growth.
Devitt tied that acceleration to a feedback loop of sorts, arguing that as customers spend more on AI tools, they end up using more of AWS’s core cloud services too, which keeps stacking additional growth on top of what’s already accelerating. He singled out Amazon as one of the sturdier names he covers, pointing to the mix of computing infrastructure the company owns outright alongside its physical fulfillment network as a hard-to-replicate advantage.
Amazon’s Chart Shows Broader Uptrend
Even with today’s decline, Amazon’s longer-term technical picture remains intact. The stock is trading about 10% above its 200-day moving average of $238.31 and holding above its 50-day average of $249.35, keeping the trend pointed higher despite the red session. Shares are also hovering just above their 20-day average of $260.14.
The relative strength index sits at 52.36, a neutral reading consistent with a stock digesting recent gains rather than pushing hard in either direction. That kind of reading typically points to a balance between buyers and sellers rather than a stock that’s overbought or oversold.
Amazon remains below its 52-week high but well above its 52-week low, a positioning that traders are likely to treat as a pullback within a larger uptrend unless key support levels start to give way. A golden cross from May, when the 50-day average moved above the 200-day, continues to support the bullish backdrop even as the stock works off its August highs.
Traders are watching $287 as resistance, near the 52-week high where past rallies have stalled, and $226 as support, a prior demand zone well below the current price that would become more relevant if the trend weakens.
AMZN Shares Are Dropping
AMZN Price Action: Amazon.com shares were down 1.24% at $262.55 at the time of publication on Thursday, according to Benzinga Pro.
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