Peter Smith
After lagging behind tech giants like Apple and Microsoft for years, Amazon is finally catching up. The company just delivered a stellar earnings beat—crushing both revenue and profit expectations—and is forecasting another $30 billion in revenue growth next quarter. Even more impressive, profit margins have doubled year-over-year, proving that Amazon's cost-cutting and AI investments are actually working. Now, with a textbook bullish chart pattern forming, Amazon looks like one of the strongest plays among mega-cap tech stocks heading into 2026.
Technical Setup: Elliott Wave 5 Points to $300
Market analyst The Analyst highlights a clean Elliott Wave structure on Amazon's daily chart, showing the stock completing a corrective Wave 4 and now launching into Wave 5—the final leg of the current rally. Here's what stands out:
- Wave 4 bottomed around $211–$212, right at the 0.618 Fibonacci retracement level, which is classic technical support
- Breakout confirmed above descending resistance, signaling fresh momentum
- Primary target sits at $282, with an extended Fibonacci target near $301
- From current levels around $248, that's a potential 20–25% upside if the pattern holds
As long as Amazon stays above that $210–$212 support zone, the path toward $300 looks increasingly likely.
Why the Fundamentals Back the Chart
It's not just the technicals—Amazon's business is firing on all cylinders. Revenue is set to jump $30 billion next quarter, profit margins have doubled (the fastest growth among the Mag 7), AWS cloud services are accelerating again thanks to AI demand, and both retail and advertising hit record highs. Institutional money has been flowing back in since Q3, and the valuation still looks reasonable compared to peers. Everything lines up for a continued rally.
Amazon's Elliott Wave pattern and earnings momentum both point toward a sustained move higher into early 2026. If support holds, the next big milestones are 282 and $301. With fundamentals improving and technicals aligning, Amazon looks ready to reclaim its spot as a top-tier tech performer.
Peter Smith
