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Just For You 2 Ways to Trade Amazon Ahead of EarningsBy Sam Quirke. First Published: 1/20/2026. 
At a Glance - Amazon heads into earnings well below its November high, though with an intact uptrend.
- Bulls see a catch-up trade taking shape after a flat 2025, while the bears want proof that growth has not quietly peaked.
- With analyst support also very strong, it's hard not to want to buy into Amazon's potential—the only question is when.
Shares of tech giant Amazon.com Inc. (NASDAQ: AMZN) were trading just above $230 the week of Jan. 20 as the company prepares for its first earnings report of the year, due in early February. Technically, the stock remains in an uptrend — supported by a string of higher lows — but it is also starting to look uncomfortably flat. Amazon has struggled for weeks to push past the record high it set in November, leaving the stock in limbo while the broader market continues to move to fresh highs. The former CEO of Google calls it the most important thing to happen in 500, maybe 1,000 years of human society. A former U.S. Treasury Secretary says when your great-grandchildren write the history of this period, the political headlines will be the second or third story. The first story is something none of us have seen before. The dot-com collapse, global financial crisis, and COVID-19 pandemic don't compare to what's coming next. We may be entering a period of dramatic, almost unimaginable change. See the full warning and how to prepare now. This kind of divergence, rare for Amazon, makes the upcoming report especially important. On one hand, Amazon has several strong tailwinds working in its favor. On the other hand, it finished 2025 essentially flat and hasn't hit the ground running in 2026. With geopolitical tensions rattling markets, this earnings report feels less like a routine update and more like a chance for Amazon to shake off its dormancy and reassert the longer-term uptrend. Below is a closer look at the setup and how investors might approach it. Framing the Setup Looking at the chart, the setup is straightforward. After retreating from the high it reached in early November, Amazon needs to re-ignite momentum soon; without a renewed push higher, the stock is likely to drift lower. That said, the fact that Amazon has maintained a higher-low structure is encouraging. It suggests buyers are still stepping in on weakness. But trends can't survive indefinitely without forward progress, and at some point the stock must demonstrate it can make a new high to justify continued optimism. The burden of proof sits with the bulls, and a strong earnings report would go a long way toward waking the stock up. Expectations are high that 2026 will be a solid year for Amazon. Option #1: Back the Catch-Up Trade For more aggressive investors who believe Amazon is being unfairly discounted, buying ahead of earnings is an option. The premise is that a strong report could trigger a catch-up rally after Amazon underperformed in 2025 while the broader market pushed to new highs. Recent analyst support reinforces that view. Reiterations and upgrades from firms such as Scotiabank and New Street Research have produced price targets ranging from the mid-$260s to $350, making it difficult to argue the stock isn't materially undervalued today. Even amid rising geopolitical risk, some analysts like Wedbush continue to argue that large-cap tech, including Amazon, remains an attractive place to be. For investors willing to accept the volatility that can accompany earnings, this approach is about positioning early and trusting the longer-term story. Option #2: Wait for Confirmation The more cautious strategy is to stay on the sidelines until earnings remove some uncertainty. After trading sideways for so long, Amazon has eroded some of the confidence it built over recent years, and there is a reasonable case that the stock needs to prove growth hasn't stalled before moving higher. This approach also accounts for macro risk. With markets sensitive to geopolitical headlines, even a decent earnings report could produce a muted reaction if it fails to check every box on the bulls' list. Waiting helps investors avoid a potential sell-the-news reaction and lets them enter once the direction is clearer. The trade-off is that clarity often comes at a higher price. If Amazon rallies sharply toward the $260 level on strong results, latecomers may be forced to chase the move.
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