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Thursday's Featured Content Amazon Just Did This—and It Didn't End Well Last TimeWritten by Sam Quirke. Published 11/18/2025. 
Key Points - Amazon’s ongoing drop just triggered a rare RSI swing from extremely overbought levels to near-oversold levels in just two weeks - the last time this happened, the stock fell 35%.
- However, the company’s fundamentals, analyst support, and diversified growth engines are all as strong as ever.
- If there is to be a similar drop this time around, then it would be another golden buying opportunity.
It may be surprising there's a bearish case calling for a sell-off for a stock that hit a fresh all-time high at the start of November. But despite shares of Amazon.com Inc (NASDAQ: AMZN) moving into blue-sky territory after earnings at the end of October, the stock has been selling off over the past fortnight — and that's where we are now. Street Ideas highlights early activity in small-cap names before they show up on mainstream radars. Stay ahead of the noise with alerts focused on real momentum, not hype. Get Early Access — Join Free After tagging an all-time high near $260, Amazon opened the session on Tuesday, Nov. 18, around $230, meaning it has given up more than 10% and almost all of its post-earnings gains. Yet the eye-catching part isn't just the price action — it's what the RSI did and what that might mean. A Rare RSI Crash To long-time MarketBeat readers who've seen us praise Amazon's execution and highlight its long-term growth potential, fear not. The upside story remains intact. But something notable has appeared on the chart that gives pause in the short term: the stock's Relative Strength Index (RSI), a popular indicator for measuring how overbought or oversold a security is, has swung from above 70 to below 50. In other words, the swift, one-directional sell-off pushed the RSI from extreme overbought to near-oversold. That suggests bulls have largely thrown in the towel and bears are in control — not what you'd expect from a company that just beat analyst expectations a few weeks ago. Normally this shift wouldn't be that remarkable. But at a time when tech valuations are being questioned across the board — particularly for stocks exposed to the AI and cloud-computing themes — it stands out. The last time Amazon's RSI moved from above 70 to below 50 was in December of last year, just before shares began a roughly 35% slide that didn't bottom until April. Why the Bears Don't Have Much Else Bears will seize on this as a hint of worse to come, but that's largely all they have. And if Amazon were to sell off that much, it would present an even bigger buy-the-dip opportunity than the one we highlighted recently. This stock benefits from multiple revenue engines that appear to be firing on all cylinders, and it's consistently rated a Buy by analysts who see upside. Recent bullish notes have come from firms including Mizuho, President Capital and Loop Capital, the latter of which just set a new street-high price target of $360. From the level where shares traded early on Nov. 18, that implies more than 50% upside — not bad for a roughly $2.5 trillion company. Such potential returns at this scale tend to occur when growth engines are not just intact but accelerating. Last month's report showed AWS growing about 20% year-over-year, advertising revenue climbing, and margins holding up. Nothing in the October results suggested those trends are slowing — this dip appears, for now, to be largely technical and sentiment-driven. NVIDIA's Earnings Could Set the Tone Investors should watch how Amazon trades through the rest of the week and, importantly, how the broader market behaves. Persistent jitters around an AI froth are stoking volatility, and frothy valuations are fueling the anxiety. NVIDIA's (NASDAQ: NVDA) earnings, due Wednesday, Nov. 19, will go a long way toward calming or exacerbating those jitters. Either way, there should be an opportunity for long-term Amazon believers. Either the bull run resumes and the stock returns to all-time highs, or it takes a breather and falls to levels bargain hunters were dreaming about a few weeks ago. Unless something fundamentally changes in Amazon's go-to-market strategy or its ability to execute, it remains one of the best mega-cap tech stocks to own heading into 2026 — period.
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