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Shares of Amazon.com (AMZN) rallied to a 1-year high earlier this month and are up +67% this year due to resurgent profit and revenue growth. Amazon is up +5% this month, while other mega-cap technology stocks such as Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), and Nvidia (NVDA) have all fallen. However, some analysts are concerned that Amazon lacks additional catalysts to extend its rally.
Since posting a 3-1/4 year low in January, shares of Amazon have trended higher up to this month’s 1-year high. However, Ned Davis Research said the technology sector looks less attractive as it loses momentum and that mega-cap weakness and valuations “have the sector on a short leash for a downgrade.” Also, Bensignor Investment Strategies said, “With Amazon trading at the highest it’s been in a year, this is not the time or the place to be adding” new long positions.
