Amazon Shares Near $261 as Bulls Back AI Spending

The move also comes with technicals that show momentum has cooled from earlier peaks but remains constructive. Amazon’s 14-day RSI was 39.0, down from overbought levels above 70 earlier this month, while MACD remained positive at 1.859, suggesting the stock is still recovering after a sharp pullback from the Aug. 3 high of $284.02.

For investors, the bigger story is valuation and earnings durability. Amazon is trading at roughly 21.3 times forward earnings, near the S&P 500’s 20.4 times, according to the supplied context, even as prominent backers including Peter Thiel and David Tepper have added to positions. That keeps the stock in a rare zone where a mega-cap growth name is priced closer to the index than to other AI and cloud leaders, despite much larger optionality in AWS, advertising and logistics automation.

The “look to history” argument is rooted in Amazon’s long pattern of spending first and monetizing later. Bulls say the current wave of AI-related capital spending could follow the same playbook, especially as the company pushes deeper into cloud services and automation through moves such as its AutoStore partnership and continued buybacks.

The comparison with the broader market is also improving. Adalytica’s S&P 500 trade signals show greed at 74 even as awareness sits at an extreme-fear 15, a backdrop that can support selective buying in large-cap names with strong narratives and institutional sponsorship.

The next catalyst is whether Amazon can keep converting AI and cloud investment into margin expansion without spooking the market with capex growth. For shareholders, the upside case depends on history repeating itself; for skeptics, the risk is that this cycle takes longer to pay off than bulls expect.