Amazon (AMZN) Surges 3.38% on Earnings Beat and AI Partnership Hype – Is This the Start of a New Bull Run?

Summary
• Amazon (AMZN) rockets 3.38% intraday to $220.99, breaking above its 52-week high of $242.52.
• TD Cowen raises price target to $255, citing Q2 earnings beat and AWS growth resilience.
• Jim Cramer endorses Amazon’s OpenAI partnership as a strategic AI edge over rivals.
• Leveraged ETFs AMZZ and AMZU surge 6.79% and 6.69%, amplifying retail bullish sentiment.
Amazon’s sharp intraday rally reflects a confluence of earnings optimism, AI partnership validation, and sector-specific momentum. With the stock trading near its 52-week high and leveraged ETFs surging, the move underscores a shift in market sentiment toward AI-driven cloud computing leaders.

Earnings Beat and AI Partnership Fuel Amazon’s Rally
Amazon’s 3.38% intraday surge is directly tied to two catalysts: a Q2 earnings beat and a strategic AI partnership. TD Cowen’s upgraded $255 price target followed Amazon’s results, which exceeded expectations despite AI capacity constraints. Simultaneously, Jim Cramer highlighted Amazon’s deal to integrate OpenAI’s models into AWS as a critical move to counter narratives of lagging in generative AI. These developments, combined with a 2.4% revenue forecast boost for Q3, created a short-term bullish narrative. The stock’s breakout above its 200-day moving average ($209.82) and 30-day average ($223.44) further amplified momentum.

Cloud Computing Sector Volatility Amid AI Infrastructure Shifts
The Cloud Computing sector remains fragmented, with Amazon outperforming its peers. Microsoft (MSFT), the sector leader, fell 0.38% intraday, signaling divergent investor sentiment. While Amazon’s AI partnership and AWS growth resilience attract buyers, Microsoft’s recent earnings highlighted faster Azure growth, creating a tug-of-war in market positioning. The sector’s broader narrative—driven by AI infrastructure costs and onshoring trends—adds complexity, but Amazon’s strategic moves currently dominate the spotlight.

Capitalizing on Amazon’s Bullish Momentum: ETFs and Options Playbook
• 200-day average: 209.82 (below current price)
• RSI: 39.72 (oversold)
• MACD: 0.53 (bullish divergence)
• Bollinger Bands: 212.95–238.25 (current price near upper band)
• Support/Resistance: 211.65–212.0992 (short-term support), 204.69–206.1848 (long-term support)
Amazon’s technicals suggest a short-term bullish setup, with the stock trading near its 30-day average and RSI indicating oversold conditions. Leveraged ETFs like AMZZ (30.81, +6.79%) and AMZU (36.37, +6.69%) offer amplified exposure to this momentum. For options, two contracts stand out:

AMZN20250815C222.5
• Type: Call
• Strike Price: 222.5
• Expiration: 2025-08-15
• IV: 24.79% (moderate)
• Leverage Ratio: 71.33% (high)
• Delta: 0.4595 (moderate sensitivity)
• Theta: -0.5958 (rapid time decay)
• Gamma: 0.0437 (high sensitivity to price swings)
• Turnover: 1,342,288 (liquid)
• Payoff at 5% Upside: $221.04 → $221.04 - $222.5 = -$1.46 (breakeven at $222.5).
This contract offers high leverage and gamma, ideal for a short-term rally. Its moderate delta ensures it benefits from price swings without excessive premium decay.

AMZN20250815C225
• Type: Call
• Strike Price: 225
• Expiration: 2025-08-15
• IV: 24.39% (moderate)
• Leverage Ratio: 106.83% (very high)
• Delta: 0.3516 (moderate sensitivity)
• Theta: -0.4850 (rapid time decay)
• Gamma: 0.0416 (high sensitivity to price swings)
• Turnover: 1,884,100 (liquid)
• Payoff at 5% Upside: $221.04 → $221.04 - $225 = -$3.96 (breakeven at $225).
This contract’s high leverage and gamma make it a top pick for aggressive bulls. Its lower delta reduces premium erosion, aligning with Amazon’s current momentum. Aggressive bulls may consider AMZN20250815C225 into a bounce above $225.

Backtest Amazon.com Stock Performance
After an intraday increase of 3% in Amazon (AMZN), the stock tends to exhibit positive short-to-medium-term gains. The backtest data shows that the 3-day win rate is 50.89%, the 10-day win rate is 56.10%, and the 30-day win rate is 59.02%. This indicates that AMZN tends to move upwards in the immediate aftermath of such a surge.

Amazon’s AI-Driven Bull Run: Key Levels to Watch and Immediate Action Plan
Amazon’s 3.38% rally is a blend of earnings optimism and AI partnership validation, but sustainability hinges on holding key technical levels. The 212.95 Bollinger Band support and 209.82 200-day average are critical for short-term stability. With Microsoft (MSFT) down 0.38%, Amazon’s outperformance highlights its strategic edge in the AI cloud race. Investors should monitor the 225 strike as a near-term resistance; a break above could trigger a retest of the 52-week high. Aggressive buyers may target AMZN20250815C225 if $225 breaks, while conservative bulls should watch the 212.95 support level.