Sergey Diakov
Amazon's multi-year restructuring is finally paying off. After years of margin pressure, the company is entering a new phase of profitability acceleration that's now clearly reflected in both fundamentals and market behavior. Combined with a strong technical structure, the latest data suggests Amazon may be transitioning into its most convincing growth phase since the pre-2021 bull market.
Amazon Profitability Surge Pushes Stock Toward New Momentum
Recent analysis shows that Amazon's operating income has climbed nearly fourfold since the 2021 peak—an inflection point that marks a dramatic fundamental rebound. This surge is powering what many investors describe as long-overdue recognition for AMZN as it reclaims leadership among mega-cap U.S. tech stocks.
The data presents a staircase-like rise in operating income. After a challenging 2022 that featured multiple quarters of year-over-year declines, Amazon began an aggressive recovery in early 2023 with growth accelerating rapidly throughout the year. Through 2024, this trend continued with sustained double- and triple-digit expansion, culminating in Q4 2024's +60.5% increase. These improvements reflect:
- Disciplined cost reductions in logistics
- Efficiency gains in AWS
- A rebound in global e-commerce demand
Technical Structure: AMZN Returns to Its 2021 Zone
Amazon is returning to the same price region where it topped in 2021. Unlike the previous cycle, the stock now shows a healthier structure—it remains above the 50-EMA, supported by steady momentum and strong buyer activity. Volume-by-price reveals reduced supply pressure above $225, meaning fewer trapped sellers are waiting to exit. This creates a more constructive path as AMZN tests the upper range near $240–$250. The price action aligns with the fundamental story: a stronger company revisiting its old highs with significantly improved earnings power.
AMZN Is "Finally Getting the Respect It Deserves"
With operating income now nearly quadruple its 2021 levels, Amazon is no longer the low-margin, cost-heavy operation it was during the last cycle. AWS stabilization, retail margin expansion, and improved cost structure all support premium valuation. The market is beginning to price in these changes, and if Amazon maintains its current trajectory, analysts expect continued upside as investors reward consistent profitability growth across both retail and cloud segments.
Sergey Diakov
