Amazon ( (AMZN) ) has fallen by -10.12%. Read on to learn why.
Amazon’s stock has experienced a significant decline of 10.12% over the past week, largely due to a combination of macroeconomic factors and specific company challenges. Analysts have pointed to the recent tariffs imposed by President Trump as a major contributor to the downturn, which has shaken investor confidence and led to a broader sell-off in the tech sector. These tariffs, along with softening consumer sentiment, have prompted analysts to lower their revenue and operating income estimates for Amazon, despite the company’s strong position in e-commerce and cloud computing.
The decline in Amazon’s stock price is also attributed to concerns about the company’s future revenue growth. Analyst John Blackledge of TD Cowen has revised his revenue growth forecasts downward, citing potential deceleration in Amazon Web Services (AWS) revenue due to AI capacity constraints and foreign exchange headwinds. Despite these challenges, Blackledge maintains a Buy rating on Amazon, highlighting the company’s ability to maintain revenue growth and operational income above expectations even in a challenging economic environment.
Amid these challenges, Amazon still has some strategic advantages that could help it weather the storm. The company’s large Prime member base and improvements in cost efficiencies and delivery speeds are expected to continue benefiting its North American eCommerce business. Additionally, potential strategic acquisitions, such as the rumored interest in TikTok’s U.S. operations, could provide new growth avenues. Analysts remain optimistic about Amazon’s long-term prospects, with a Strong Buy consensus and a significant upside potential in its stock price target.