For much of the past year, Amazon (AMZN) has felt like the forgotten member of the Magnificent 7.
While mega-cap stocks like Nvidia (NVDA), Microsoft (MSFT), and Meta (META) dominated headlines, Amazon quietly lagged — despite strong fundamentals, accelerating cloud growth, and expanding business lines. That disconnect is exactly why Amazon has now become one of the most compelling momentum setups in the market.
In a recent Market on Close livestream, Senior Market Strategist John Rowland, CMT, made the case plainly: Amazon’s time is now.
The Mag 7 Rotation Most Investors Miss
Leadership inside the Mag 7 doesn’t move together; it rotates.
John pointed out that this same pattern has played out before. Microsoft led first. Then Alphabet (GOOG) (GOOGL) caught up in a powerful surge. Amazon, meanwhile, spent much of the past year consolidating and digesting prior gains while investor attention moved elsewhere.
That rotation matters. When mega-cap leaders fall out of favor, they often rebuild quietly — and when momentum returns, it tends to arrive quickly and decisively.
That’s exactly what’s happening now.
The Technical Signal That Changed the Narrative
In early January, Amazon triggered a Trend Seeker buy signal, a proprietary Barchart indicator that evaluates momentum across multiple timeframes. The signal appeared as Amazon broke above a resistance zone that had capped price action since mid-summer.
That breakout carried two important confirmations:
- A new multi-week high
- A new monthly high
For momentum traders, that combination matters. It signals not just a bounce, but a potential shift in trend.
According to Barchart’s technical model, Amazon now carries an 88% Buy Opinion, derived from 13 separate technical indicators. Even more notable: much of that momentum has arrived in just the last few weeks, suggesting early-stage acceleration rather than exhaustion.
Why This Isn’t Just a Chart Story
Amazon’s renewed momentum isn’t happening in a vacuum. Fundamentally, the company is entering 2026 with multiple growth engines firing at once:
AWS is reaccelerating. Cloud revenue growth has moved back above 20%, driven by enterprise AI demand. Unlike peers dependent on third-party chips, Amazon is scaling its own silicon — giving AWS both cost and margin advantages.
New verticals are scaling quietly. Amazon autos continues expanding city by city. Prescription drug home delivery is gaining traction. These initiatives aren’t hype; they’re extensions of Amazon’s logistics dominance.
And valuation compression creates opportunity. At roughly 30x forward earnings, Amazon trades at a steep discount to its own historical multiples, despite improving margins and stronger revenue visibility.
This combination — improving fundamentals and emerging technical strength — is what creates durable momentum, not just short-term trades.
Why Amazon Now Deserves a Fresh Look
Amazon spent much of the past year lagging its peers — not because the business weakened, but because the market rotated away from it. Now, that rotation appears to be reversing.
With momentum turning, fundamentals improving, and technical signals aligning, Amazon is no longer the “quiet” Mag 7 name. It’s becoming the catch-up trade — and potentially the next leadership story.
For traders and investors alike, this is the moment to stop asking “Why hasn’t Amazon moved?” and start asking “What happens if it keeps going?”
Watch this quick clip on the Mag 7:
👉Stream the full Market on Close episode
👉 Explore Amazon trade alerts on Barchart
On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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