Although we are less than two months into the year, 2025 has been kind to Amazon (AMZN). At the end of January, the stock was nearing an all-time high with a highly anticipated earnings report on the horizon. However, Amazon stock is down 3% in the last five days after a disappointing earnings report last week. While the company reported better-than-expected earnings and revenue for the fourth quarter, it gave disappointing guidance for the current period.
Following the report, AMZN shares fell 5%. Amazon expects sales in Q1 2025 to be between $151 billion and $155.5 billion, the company said. Analysts were expecting $158.5 billion, according to LSEG.“This guidance anticipates an unusually large, unfavorable impact” from foreign exchange rates, the company said. The impact amounts to $2.1 billion, or 1.5%, Amazon said in the report.
Amazon Stock Dipping: Should You Buy Now?
With AMZN dipping slightly, there are some stock experts suggesting that now could be a good window to buy in. The company is expected to mantain solid stock performances in 2025 like it did last year. Thus, any period of flux can be seen as a chance to “buy the dip.”
Shares are trading just below a former 233 flat base buy point on its weekly chart, according to MarketSurge. Shares rallied past the entry on Jan. 24. The stock is also finding support at its 21-day moving average with Tuesday’s action. After a sluggish start, AMZN is up about 5% on the year, meaning the current dip is a solid entry point.
Also Read: Amazon Defeats Walmart in Revenue: Should You Buy AMZN Stock Now?
Furthermore, Amazon has recorded significant growth in two key markets as it surged to a record $638 billion in revenue. Moreover, its success overseas has only enhanced the growth prospects that the stock has. The company looks to solidify its position as one of the lowest-risk stocks on Wall Street. These moves spark investors’ interest in dips like the one we’re seeing right now.
AMZN is widely expected to continue outpacing the market over the next 12 months on the back of Amazon’s cloud computing and online sales strength. The positive outlook on Amazon as a stock is a near consensus on Wall Street. Of 72 analysts surveyed by CNN, 94% have a buy rating on the stock, with just 6% calling to hold. Moreover, the stock has a median price target of $235, with a high-end projection reaching $285, a 23% increase from its current position.