Valued at a market cap of $2.2 trillion, Amazon.com, Inc. (AMZN) is one of the world’s largest and most diversified technology companies, operating across e-commerce, cloud computing, digital advertising, media, and AI services. Headquartered in Seattle, Washington, Amazon began as an online bookstore and has since evolved into a global powerhouse with operations in over 20 countries.

Companies valued over $200 billion are generally described as “mega-cap” stocks, and Amazon fits right into that category. Its massive global scale and logistics infrastructure enable fast and efficient delivery, supporting its dominant position in the e-commerce sector. Its cloud division, Amazon Web Services (AWS), leads the industry and generates high-margin revenue that fuels broader innovation. 

However, the company pulled back 15.6% from its 52-week high of $242.52, recorded on Feb. 4. Shares of Amazon have plunged 3.6% over the past three months, trailing the Amplify Online Retail ETF’s (IBUY) marginal rise over the same time frame.

AMZN stock is down 6.7% on a YTD basis, underperforming IBUY’s 3.7% rise. Moreover, shares of Amazon have gained 12.4% over the past 52 weeks, compared to IBUY’s 23.1% return over the same time frame.

AMZN stock has been trading above both of its 50 and 200-moving averages since the mid of this month, indicating an uptrend.

On May 1, Amazon released its Q1 2025 earnings, with net sales increasing 9% year over year to $155.7 billion, surpassing analyst expectations. Net income rose significantly to $17.1 billion, or $1.59 per share, compared to $10.4 billion, or $0.98 per share, in the same quarter of 2024. AWS segment sales increased 17% year-over-year to $29.3 billion. Its shares rose 3.1% post earnings release.

Despite the strong quarterly performance, Amazon issued cautious guidance for the second quarter, projecting revenue between $159 billion and $164 billion, which aligns with Wall Street expectations at the midpoint. The company cited uncertainties around consumer demand and potential impacts from new U.S. tariffs on Chinese goods as reasons for the conservative outlook.

Focusing on the industrial competition, rival MercadoLibre, Inc. (MELI) is outperforming AMZN. Shares of MercadoLibre have climbed 49.3% over the past 52 weeks and 50% on a YTD basis.

Nevertheless, the stock has a consensus rating of “Strong Buy” from the 53 analysts covering the stock. AMZN’s mean price target of $240.69 represents a premium of 17.6% from the current market prices.