Amazon Shares Down 20%, RSI Hits Four-Year Low, Analysts See 60% Upside
Amazon shares have plunged 20% from November’s record high and 12% this year, erasing a year of gains as RSI slips into the low 20s—the lowest in nearly four years. Analysts at Daiwa, New Street and Argus maintain Buy with $325 targets, implying 60% upside as P/E drops below 30.
1. Significant Share Decline and Oversold Signal
Amazon shares have fallen over 20% from the November record high and 12% year-to-date, pushing the RSI into the low 20s—the weakest level in almost four years. Previous episodes of sub-30 RSI readings on this stock have quickly led to rebounds of up to 60%, suggesting a potential technical inflection point.
2. Analysts Maintain Bullish Ratings
Despite recent pressure and capital expenditure concerns, Daiwa Securities, New Street Research and Argus have all upheld Buy ratings with price targets reaching $325. This unified stance implies roughly 60% upside, driven by confidence in AWS growth, e-commerce leadership and expanding advertising revenue.
3. Attractive Valuation Shifts
The selloff has lowered Amazon’s P/E ratio below 30 for the first time in years, enhancing its risk/reward profile. If shares stabilize near current levels and form a base, this valuation reset could signal a renewed entry opportunity for investors.