The US stock market has faced increased volatility throughout the year so far. However, with ongoing geopolitical tensions…

The US stock market has faced increased volatility throughout the year so far. However, with ongoing geopolitical tensions easing, things look to be turning around for the better. That may make investor decisions all the more complicated, however. For a company like Amazon (AMZN), should you buy, sell, or hold the stock as we enter Q2?

The company has become one of the best investments to be made on Wall Street. A retail titan, it has continued to diversify, becoming one of the top tech options in the Magnificent 7. Yet, the question remains: What is the best course of action as May kicks off what should be a very interesting period for the stock market?

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Amazon in Q2: Should You Buy, Sell, or Hold?

The US stock market got an important boost on Monday with the announcement of a new US-China tariff deal. The agreement will see both sides pause their reciprocal import duty increases and give hope for a future trade deal. In response, the S&P 500 reached a two-month high, while the Dow Jones Index jumped more than 1,000 points.

That makes an increasingly complicated situation a little more complicated, even despite the apparent clarity. Tariffs have been the great bane of 2025, while the stopping and starting and increasing and pausing have only made that more uncertain. When it comes to that context regarding Amazon (AMZN) stock, should you buy, sell, or hold in Q2?

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The e-commerce firm recently reported Q1 earnings that were rather impressive. The most important point of note was that revenue jumped 10% to reach the $155.7 billion mark. Moreover, its operating income hit 11.8%, up from 2024’s 10.7%.

These financials were important as the tariffs loomed large. However, it still has impressive Amazon Web Services (AWS) and AI development marks that make it all the more attractive. In a recent report, Morningstar projected Q2 guidance of $159 billion to $164 billion, with operating income reaching between $13 billion and $17.5 billion.

The firm also has a 4-star rating, noting that the stock is currently undervalued in relation to its long-term fair value figure of $240 a share. Therefore, Q2 seems like a good time to buy. The stock jumped 7% on Monday, trading at $207, and still sports a bullish projection at the $290 mark, up 39% from its current position.