Is It Still Time to Buy Google or Amazon AMZN Stock After Today’s Pullback?
The market value of Tech companies has declined, with Google losing 25% while Amazon stock fell 22%, but the decline looks complete.
Live AMZN Chart
[[AMZN-graph]]
The market value of Tech companies has been declining, with Google losing 25% while Amazon stock fell 22%, but the decline looks complete and the larger uptrend seems to be resuming for both.
Amazon (AMZN) has been on a strong upward trajectory over the past two years, surging nearly 300% from 2023 to early 2025. In January 2025, the stock hit a peak of $242.52 before undergoing a sharp reversal as sentiment toward tech stocks weakened. The decline accelerated last week when Amazon announced price cuts for its cloud server architecture powered by AI-focused Trainium CPUs, driving the share price down by more than $50 to below $190.
Amazon Chart Weekly – Price Finds Support at the 50 SMA
However, buyers consistently stepped in at this level, establishing it as a key support zone. The 50-day simple moving average (SMA) (yellow) has also provided additional technical support, preventing further losses. This week, bullish momentum has returned, pushing AMZN stock up approximately 10%.
Despite concerns over profitability, Amazon Web Services (AWS) remains a major growth driver. In the latest quarter, AWS revenue increased by 19%, while the segment’s operating profit surged 62% in 2024. Analysts project that Amazon’s cloud business could surpass $100 billion in operating profit within the next two years, supporting further upside potential for the stock.
Google Stock Bounces After Finding Strong Support
While Google (GOOG) has seen a slower ascent compared to Amazon over the past two years, it has faced significant selling pressure since early February. The stock dropped 25% from its peak of $206.69, reaching a low of $156.72 last week. However, the decline found strong support at the 100-weekly simple moving average (green), where buyers stepped in, forming a pin candlestick pattern that suggests a potential bullish reversal.
This week, buying activity has intensified, driving Google’s stock price up by nearly 10% from its lows. While Google Cloud still lags behind AWS, it continues to expand its market presence, benefiting from growing demand for AI and cloud services. Alphabet’s AI initiatives, particularly its Gemini project, highlight the company’s push to stay competitive in the artificial intelligence space.
Should Investors Buy Google and Amazon Now?
Both Amazon and Google stocks have rebounded strongly from key support levels, with renewed investor confidence in their cloud and AI businesses. If this momentum continues, both stocks could see further upside in the coming months. However, market sentiment remains sensitive to broader economic trends and potential volatility in the tech sector.
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