Amazon ( (AMZN) ) has been popular among investors this week. Here is a recap of the key news on this stock.
Amazon (AMZN) is facing significant strategic shifts as sellers on its platform respond to increased tariffs imposed by President Trump. Sellers are considering reducing their advertising spend and increasing product prices to cope with the higher costs. One major seller plans to cut its advertising budget in half if inventory levels drop, and is looking to raise prices by up to 10%, which could lead to a 10-15% decrease in unit sales. Additionally, sellers are aiming to reduce their reliance on Chinese suppliers, planning to source 85% of new orders from outside China by the end of the summer. This move is a response to the hefty 145% tariff on Chinese imports into the U.S.
Despite these challenges, Amazon’s stock remains a strong buy according to analysts, with a consensus price target suggesting a 46.76% upside. Moreover, intriguing historical insights reveal that Amazon once attempted to acquire Netflix in its early days, but the offer was declined. This anecdote highlights Amazon’s longstanding interest in streaming services, which continues to be a key area of growth for the company. Investors are keeping a close eye on Amazon’s strategic maneuvers as it navigates these complex market dynamics.