You can use a range of metrics and analyses to help determine whether Amazon stock is undervalued or overvalued.
These may include factors such as the company's financial performance, earnings growth, price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and dividend yield.
The relative strength index (RSI), a popular metric that examines a 14-day moving average of a stock's gains on its up days,
in relation to losses on its down days, is one of the most popular ways of assessing whether Amazon stock is overbought or oversold.
The RSI is considered overbought when above 70 and oversold when below 30. The current AMZN RSI is 49.0984,
suggesting that Amazon stock is neutral.
The investor sentiment for Amazon stock is presently
bearish,
which could suggest that investors believe that Amazon will drop lower in the near future.