Amazon (AMZN) has entered 2026 with its core fundamentals strengthening even as the stock has undergone a sharp technical reset. After leading the artificial intelligence infrastructure buildout through 2025, AMZN has recently pulled back toward major support levels amid broader growth-stock volatility. This correction has pushed AMZN into oversold conditions, creating a favorable setup for long-term investors aligned with the AI infrastructure thesis. With Amazon Web Services (AWS), advertising and logistics automation continuing to scale, Amazon’s recent weakness appears to reflect sentiment fatigue rather than a deterioration in business quality. Trade Timing & Outlook AMZN has sharply retraced from recent highs and is now stabilizing near long-term support around the $195–$200 zone. Support retest: The stock has successfully tested prior breakout support near $195, an area that previously marked multi-month resistance. Oversold conditions: Relative Strength Index has fallen into oversold territory, historically associated with intermediate-term rebounds. Mean reversion setup: Price has deviated meaningfully from key moving averages, increasing the probability of technical reversion toward $220–$230. Fundamentals Amazon continues to exhibit superior growth and profitability metrics relative to its peer group: Forward P/E: ~25x vs. industry ~24x Expected EPS growth: ~25% vs. industry ~7% Expected revenue growth: ~12% vs. industry ~6% Net margins: ~10.8% vs. industry ~7.0% AWS remains the company’s primary profit engine, generating the majority of operating income while re-accelerating growth through AI workloads. Advertising, now approaching a $60 billion annual run-rate, adds a second high-margin growth vector. Combined with improving retail efficiency, Amazon’s earnings power continues to compound faster than headline revenue. Bullish Thesis AI leadership: Amazon is a core beneficiary of the “AI Infrastructure Inversion,” with AWS, custom silicon (Trainium), and Bedrock positioned to monetize compound inference demand at scale. Margin expansion: AWS, advertising and logistics automation are driving structural operating leverage, enabling earnings per share growth to outpace revenue. Enterprise lock-In: AWS maintains the deepest enterprise relationships in cloud computing, giving Amazon durable pricing power in AI services and data infrastructure. As AI workloads shift from experimentation to production, Amazon’s vertically integrated platform allows it to capture recurring inference-driven, revenue streams. Options Trade To express a bullish view with income generation and potential acquisition at a discount, I’m looking at Selling the March 20, 2026 $200 Put @ $7.03 Credit. Maximum reward: $703 per contract (premium received) if AMZN is above $200 at expiration Maximum risk: Assignment below $200, equivalent to owning AMZN at $192.97 Breakeven: $192.97 Selling the March 20, 2026 $200.00 put option on AMZN gives you the ability to potentially acquire the stock at a 3.64% discount. You will collect $703.00 in premium per contract and have an obligation to purchase 100 shares of the stock at a net price of $192.97 if the stock closes below $200.00 and the put option is exercised by the buyer. View this Trade with Updated Prices in OptionsPlay Summary Amazon’s recent pullback has created a high-quality entry point into one of the most strategically important companies in the AI infrastructure ecosystem. With AWS well-placed at the center of inference compute demand, AMZN’s long-term earnings trajectory remains intact. The combination of fundamental strength and structural AI tailwinds supports a compelling, risk-adjusted bullish setup. Amazon offers a rare opportunity for investors seeking exposure to the next phase of AI monetization with downside management. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
