Amazon stock upgraded to Buy after breaking $250 resistance, driven by strong Q1 earnings and AI growth.

Amazon.com, Inc. has been upgraded to a Buy rating following a clear breakout above the long-term technical resistance level of around $250. The company's Q1 earnings revealed multiple fundamental drivers for earnings per share (EPS) growth, which could support continued stock price gains. Although the current valuation at over 30 times forward P/E presents some risk, this is balanced by strong owners' earnings and growth prospects, especially from AI and AWS expansion. Analysts expect Amazon's EPS to more than triple by fiscal year 2031, reducing the forward P/E to about 9.8 times, indicating significant long-term growth potential.