Should I buy Amazon stock in 2025? South Africa Analysis & Tips

What is Amazon?

How much is Amazon stock?

The price of Amazon stock is rising this week. As of now, AMZN trades at $205.70, showing a 24-hour gain of $0.98 (+0.48%) and a weekly increase from last week’s close. Amazon’s market capitalization stands at an impressive $2.17 trillion, supported by an average three-month trading volume of approximately 31.7 million shares. The stock’s current price-to-earnings (P/E) ratio is 33.56, with no dividend yield reported, and a beta of 1.34, indicating above-average volatility. For South African investors, this performance reflects both dynamic growth potential and the need to consider swings in the global tech sector.

Our complete analysis of the Amazon stock

After reviewing Amazon’s latest quarterly results and evaluating the stock’s performance over the last three years, our multi-factor analysis—leveraging fundamental metrics, technical signals, market trends, and competitive positioning—indicates renewed bullish momentum building behind Amazon. Supported by our proprietary scoring algorithms, we have observed a compelling convergence of operational strength, sector outperformance, and expanding opportunity in generative AI and cloud. So, why might Amazon be poised to once again represent a strategic entry point into global tech leadership and digital retail in 2025?

Recent Performance and Market Context

Amazon’s stock has demonstrated robust resilience and renewed upside since the start of 2025, currently trading at $205.70 as of late May. While the stock reached its all-time high of $242.52 in February, a constructive 20% rebound following a 33% correction between February and mid-April illustrates the market’s confidence in Amazon’s fundamentals and growth trajectory. Daily trading volumes remain strong at 31.7 million shares, underscoring continued institutional and retail interest. The 52-week performance range ($151.61 – $242.52) highlights both volatility and the capacity for rapid recoveries—a common trait among sector leaders during restructuring or macro shifts.

Several positive events have supported this momentum. Q1 2025 results exceeded even the most optimistic analyst forecasts, with headline growth driven by surging demand in Amazon Web Services (AWS) and record-breaking profitability. Furthermore, management’s strategic focus on operational efficiency, including simplifying internal structures and driving AI-related initiatives, has resonated well with investors, underpinning Amazon’s valuation premium in a competitive technology environment.

The broader macro backdrop remains favourable for mega-cap tech, particularly those positioned at the convergence of cloud computing, e-commerce, and artificial intelligence. With global digital transformation accelerating and enterprise appetite for cloud-based AI solutions robust, Amazon is well-placed to capitalise on multi-year trends in digitalisation, hybrid work, and online consumption—factors that are particularly resonant for investors in developed and emerging markets alike, including South Africa.

Technical Analysis

A review of key technical indicators reveals that Amazon sits on solid footing and benefits from bullish undercurrents that could portend the next upward leg:

• Relative Strength Index (RSI) at 59.58 signals a ‘neutral’ but strengthening momentum, moving toward bullish territory without evidence of overbought conditions.
• MACD is positive at 4.38, indicating building upside energy and confirming recent trend reversals.
• The stock is firmly above its 20-day Simple Moving Average ($198), an important signal of short-term trend strength.
• Notably, the support zone between $200–$202 has been repeatedly validated as a key platform following the recent correction; each revisit has elicited strong buying interest, suggesting institutional accumulation and effective downside protection.
• Near-term resistance at $205.17 looms, but a sustained breakout above this level may invite further momentum buyers, potentially accelerating a shift toward previous highs.

Structurally, the sequence of higher lows since April, alongside volume spikes during upward moves, implies that medium-term sentiment is decisively constructive. For technically minded investors, this setup resembles the early stages of a renewed bullish cycle—providing a strong argument for considering fresh entry.

Fundamental Analysis

From a pure fundamental perspective, Amazon’s current trajectory is nothing short of impressive. Q1 2025 financials not only beat consensus but highlighted the operational leverage embedded in the business:

• Revenue for the quarter surged to $155.7 billion, up 9% year-over-year—demonstrating the company’s ability to scale across geographies and segments.
• Net income leapt to $17.1 billion (from $10.4 billion in Q1 2024), driving first-quarter EPS to $1.59—outpacing estimates by a solid 16%.
• Revenue diversification remains robust: North American sales (+8% YoY), International (+5%), and, most importantly, AWS continues to outpace the market owing to “insatiable” demand for artificial intelligence-centric cloud solutions.

Despite trading at a forward P/E of 33.56—a premium to the sector median—Amazon’s growth-adjusted valuation (PEG ratio) remains justified given the 10%+ annualised revenue growth and expanding net margins. The consensus price target of $240.62 (median of 48 analysts) and an upper bound near $305 illustrates persistent optimism around future earnings power, driven by:

• Unmatched market position in global e-commerce and cloud
• Leadership in AI and digital innovation, underpinning organic growth
• Brand power and customer loyalty aiding profitability across diversified verticals

Structural strengths—such as Amazon’s integrated digital ecosystem, global logistics network, and outsized cloud operating margins—endow the company with resilience against competitive threats and macro headwinds. Strategic initiatives like compulsory office returns for corporate staff, operational streamlining, and heavy investment in AWS and generative AI position Amazon to outperform peers in the high-growth tech universe.

Volume and Liquidity

Amazon enjoys some of the deepest liquidity in global equities, with a freely traded float of approximately 9.5 billion shares and a daily average turnover of over 31 million shares. This profile translates to:

• Easy entry and exit at competitive spreads—a vital advantage for both institutional and individual investors
• High trading volumes as ongoing proof of sustained market confidence and dynamic price discovery
• Market capitalisation of $2.17 trillion supporting inclusion in major global and emerging market indices—ensuring consistent fund flows and valuation support

The immense float and broad shareholder base help dampen volatility spikes and facilitate strong, orderly moves—conducive to both tactical and strategic holdings.

Catalysts and Positive Outlook

Multiple catalysts make Amazon’s longer-term growth narrative especially attractive at this juncture:

• Generative AI and Cloud Expansion: Amazon’s leadership via AWS in delivering scalable AI services is a secular growth engine; customer demand for enterprise AI remains at record highs.
• Operational Optimisation: Ongoing streamlining of management and business units should result in both margin improvement and enhanced innovation cycles.
• Evolving Digital Ecosystem: Continuous investments in logistics, automation, and next-generation retail—along with Prime’s expanding membership perks—cement Amazon’s core business as a compounding annuity.
• M&A and R&D: Expect further bolt-on acquisitions and breakthrough products, especially in automation, IoT, and international market expansion.
• Favourable Sector Dynamics: Big Tech continues to benefit from secular tailwinds: regulatory clarity, global cloud migration, and growing digital consumption, especially in fast-growing economies.
• ESG Commitments: Enhanced sustainability programs and supply-chain transparency align Amazon with the increasing weight of ESG indices and mandates—bolstering institutional appeal and future-proofing the business.

With consensus forecasts targeting 10%+ revenue growth for full year 2025 ($650.3 billion), analyst sentiment remains constructive, projecting nearly 17% upside from current levels—fuelled by both business execution and external forces supporting sector reratings.

Investment Strategies

Given Amazon’s unique combination of technical setup and fundamental momentum, a range of strategic approaches could prove timely:

• Short-term: With prices approaching—and threatening to break—minor resistance at $205.17, short-term traders may find the risk/reward particularly compelling on a clear breakout or successful retest of the $200–$202 support band.
• Medium-term: Investors seeking swing potential may view periodic pullbacks toward the 20-day moving average as excellent entry points—especially in advance of high-visibility catalysts (e.g., next earnings season, new AWS product launches).
• Long-term: For buy-and-hold investors, Amazon continues to fit the profile of a core growth allocation within global and diversified portfolios. Its dominance in e-commerce and cloud, combined with an accelerating innovation cycle and consistent revenue expansion, provide ongoing compounding opportunities.

For investment horizons spanning multiple years, the underlying secular growth levers—AI, cloud, and digital services—suggest significant further upside. Positioning at current technical support or on periodic consolidations may optimise risk-adjusted returns ahead of expected catalysts.

Is It the Right Time to Buy Amazon?

Amazon’s recent Q1 performance, robust top- and bottom-line expansion, and positioning at the forefront of cloud and generative AI all underscore compelling reasons for renewed investor focus. The stock’s ability to rebound from correction lows, combined with constructive technical momentum and near-term catalysts, justifies a positive outlook. While valuation multiples are elevated, they remain firmly anchored in best-of-breed growth expectations and operational excellence. Amazon’s global scale, innovation culture, and strategic agility equip the company—and its shareholders—to weather macro turbulence and consistently capture new markets.

For investors in South Africa and globally seeking exposure to a transformative technology leader with multiple vectors of growth, Amazon appears to represent an excellent opportunity at current levels. The convergence of favourable technical, fundamental, and macro drivers suggests that the stock may be entering a new bullish phase—making it a serious candidate for strategic consideration within diversified growth-oriented portfolios.

In a market searching for resilient, innovative, and structurally advantaged companies, Amazon signals an opportunity worth watching closely as the next tech cycle unfolds.

How to buy Amazon stock in ZA?

Buying Amazon shares has never been easier or more secure for South African investors. Thanks to online regulated brokers, you can access global markets like NASDAQ in just a few clicks, enjoying advanced security standards and investor protections. The two main methods for buying Amazon stock online are spot buying (direct purchase of shares) and trading Contracts for Difference (CFDs). Each suits different objectives and risk profiles. To help you choose the best option, you’ll find a comparison of leading brokers further down the page.

Spot buying

Definition:
Cash, or spot buying, means directly purchasing Amazon shares on the stock market and becoming a shareholder. This method is popular for long-term investors who want to benefit from the company’s future growth.

Typical fees:
Most online brokers offer flat commissions for each order, often ranging from R70 to R190 (approx. $4–$10) per trade. Some may also charge a small currency conversion fee when buying US stocks from South Africa.

Example with a $1,000 investment

If the current Amazon share price is $205.70, a $1,000 investment (about R18,500) will allow you to buy around 4.85 shares (after factoring in a brokerage fee of approximately $5 or R95).
✔️ Gain scenario:
If Amazon’s share price increases by 10%, your holdings will be worth about $1,100.
Result: +$100 gross gain, representing a 10% return on your initial investment.

Trading via CFD

Definition:
CFD trading allows you to speculate on Amazon’s share price movements without owning the underlying shares. CFDs are suitable for active traders seeking both long and short positions, with the option to use leverage.

Typical fees:
When trading CFDs, you pay the spread (the difference between buy and sell prices) and, if you hold positions overnight, a daily financing charge.

Example with a $1,000 stake and 5x leverage

You open a CFD position on Amazon stock using 5x leverage. This means you control $5,000 worth of shares with a $1,000 margin.
✔️ Gain scenario:
If Amazon’s stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 margin (excluding fees and overnight costs).

Final advice

Before investing in Amazon or any other international stock, it’s wise to compare different brokers’ fees, trading conditions, and currency conversion charges. Your best choice will depend on your investment horizon, risk appetite, and whether you prefer direct ownership (cash buying) or more active trading with leverage (CFDs). For detailed comparisons and guidance, see our comprehensive broker comparator further down this page. Investing is accessible to everyone—choose the method that best matches your financial goals!

Our 7 tips for buying Amazon stock

The latest news about Amazon

Amazon posted a strong Q1 2025 earnings beat, with revenue up 9% YoY and profit up 65%. Amazon’s first-quarter financials, published on 30 May 2025, demonstrated sustained operational strength: revenue reached $155.7 billion, exceeding analyst expectations, while net income jumped to $17.1 billion from $10.4 billion a year prior. Earnings per share came in at $1.59—16% above consensus forecasts. These metrics underpin analyst confidence and are especially significant for investors in South Africa, where institutional asset managers frequently include Amazon in global equity portfolios due to its reliable growth trajectory and scale.

Amazon Web Services' (AWS) AI-driven cloud solutions continue expanding globally, including supporting South African enterprise digitisation. AWS maintained robust growth in Q1 2025, buoyed by surging global and regional demand for AI and cloud computing. In South Africa, AWS’s hyperscale data centre region supports cloud migration initiatives for financial institutions, fintech startups, and the public sector, accelerating digital transformation in the country. This local presence not only enhances the competitiveness of South African enterprises but also aligns Amazon’s global cloud strategy with national development goals, reinforcing its long-term relevance to regional analysts.

Technical indicators signal short-term upward momentum, with Amazon stock rebounding 20% after a recent correction. As of end-May 2025, Amazon shares are trading at $205.70, above both short- and medium-term moving averages, supported by a positive MACD and an RSI of 59.5 (neutral but with upside scope). The stock has recovered 20% since its April lows, indicating renewed investor confidence. These dynamics suggest constructive near-term sentiment for the stock, an important signal for South African traders and asset allocators seeking timing guidance for global equities.

Amazon’s strategic focus on AI, innovation, and operational efficiency strengthens its long-run growth prospects and market leadership. The company’s reinforced commitment to AI—coupled with operational restructuring and a flatter management hierarchy—is driving heightened productivity and innovation. Continuous investment in AI and cloud services supports Amazon’s leadership in both e-commerce and technology. These sustainable strategic moves position Amazon as a bellwether for global digital trends, relevant to both South African corporates leveraging AWS and domestic investors seeking long-term exposure to technology megatrends.

Analyst consensus for Amazon shares remains positive, with a 17% upside and broad appeal for ZA-based global investors. Major investment houses currently target an average 12-month price of $240.62, implying a 16.8% upside from current levels. The consensus view, derived from 48 analysts, highlights Amazon’s durable revenue growth, strong execution, and sector dominance. As South African pension funds and asset managers maintain or increase allocations to US technology names, Amazon remains an attractive cornerstone holding, offering both growth potential and diversification benefits within global portfolios.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.