What's Driving Amazon's 2.7% Surge in the Afternoon Session?
Amazon (NASDAQ:AMZN) stock surged by 2.7% during the afternoon trading session as enthusiasm for Alphabet, specifically its recently upgraded Gemini 3 AI model, reignited the artificial intelligence trade and fueled a broader market rebound heading into the Thanksgiving holiday.
The Nasdaq index experienced a notable jump of 2.6%, while the S&P 500 saw a 1.6% increase, largely driven by Alphabet's 5% rally following the announcement of its upgraded AI model. This momentum carried over to the entire tech sector.
The share prices closed at $226.13 on this day, reflecting an impressive 2.5% growth from the previous trading session.Is it now an opportune moment for investors to reconsider Amazon?
Understanding the Market's View on Amazon
A detailed examination of Amazon's recent volatility reveals its stock to be remarkably stable. Over the past year, there have been merely six instances where the share price fluctuated by more than 5%. When viewed in this context, today's significant increase signifies the market viewing this news as meaningful.
Interestingly, prior notable moves by Amazon that made headlines were observed over a week ago when the stock fell 3.4% due to concerns surrounding high valuations of AI and the pullback in tech stocks following NVIDIA's earnings announcement alongside a partnership with Anthropic.
The rapidly rising cost of acquiring data has led investors increasingly questioning the durability of this artificial intelligence rally. Moreover, plummeting Bitcoin below $90,000 further signaled reduced risk-taking behaviors by traders and heightened anxiety over possible rate cuts from the Federal Reserve.
As it stands now, there is roughly a 50% probability of a cut in December, indicating a potential shift away from monetary easing in the near future.
What's Behind Amazon's Recent Volatility
Amazon shares are not typically subject to extreme price swings. Nevertheless, today represents an exception following news that might indicate a significant influence even if investors believe it does not warrant altering their views on the company's prospects.The major reason was the downgrading of Amazon stock by Rothschild & Co Redburn, who has moved its assessment of the firm to Neutral from Buy.
A key factor for this decision was the limited potential for meaningful growth at AWS (Amazon Web Services) and profitability from artificial intelligence research. Historically, investments in new tech are seen as a necessary step forward; however, AI seems poised to be another instance of this principle but is also potentially dilutive.
The analysis highlights concerns over capital expenditures on AI leading to lower returns than expected.
In evaluating Amazon's value proposition during the last month, investors might observe that its current stock price has dipped slightly compared to earlier points in the year. To date, shares are up 2.8% since initiating new investments but have yet not risen above the high set late-November '25 by a significant margin (reaching roughly $254)