Amazon (AMZN) a Buy In April? Why Stock May Still Jump 50%
Amazon’s stock dip has investors buzzing as the e-commerce giant’s shares fell about 13% during last week’s market sell-off. This significant decline was caused by the uncertainty throughout the US markets and economy following Trump’s tariff announcement. Many investors were mixed on whether to buy the dip of AMZN as it is a top stock on the US markets. The stock is down just 25% from its ATH, and the pending rebound may help close the gap to that high.
Wall Street has been debating in recent weeks just how much Amazon could be hit by increased tariffs. China-based sellers have more than 50% market share on Amazon’s third-party seller marketplace, according to research from MarketPlace Pulse. Additionally, BofA Securities analyst Justin Post wrote last month that tariffs were a “sector negative” for e-commerce. However, the analyst added, “platforms with large third-party selections, such as Amazon or eBay (EBAY), can allow for better substitution and/or for consumers to self-select cheaper items.”
Could Amazon Still Be a Buy: 50% Surge in 2025 Still in Play
Despite the dip, some analysts are immediately trying to spin the stock crash into a buying opportunity for Amazon (AMZN). For Amazon specifically, Citi analysts suggest that the dip and rumors swirling around Amazon buying TikTok could generate fuel for a quick resurgance. Liberation day impacted most of the stock market, with few major companies remaining in the red on Thursday.
Furthermore, Amazon’s e-commerce business is the most consumer-facing segment, but it’s far from the most important. Amazon Web Services (AWS) is arguably the most important division because it produced 58% of the company’s operating profits in 2024.
Correspondingly, AWS won’t be as affected by the tariffs since it’s providing computing power over the cloud to clients. Thus, one of the company’s top revenue sources could still bring huge profits in 2025.
Also Read: Apple (AAPL) Flies in 5 Planes Full of iPhones to Avoid US Tariffs
However, it’s not completely immune from tariffs, either. Management has to get the computing power for its servers from somewhere, and a large majority of chips that power GPUs come from Taiwan, which was hit with a 32% tariff.
All in all, Amazon (AMZN) stock could still rebound and perform very well after the recent hit from the market. AMZN is trading near the bottom of its 52-week range and below its 200-day simple moving average. Analysts at CNN still see a median price climb of 55.42% for Amazon shares over the next year. This would place AMZN up at $270.
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Amazon (AMZN) a Buy In April? Why Stock May Still Jump 50%
Amazon’s stock dip has investors buzzing as the e-commerce giant’s shares fell about 13% during last week’s market sell-off. This significant decline was caused by the uncertainty throughout the US markets and economy following Trump’s tariff announcement. Many investors were mixed on whether to buy the dip of AMZN as it is a top stock on the US markets. The stock is down just 25% from its ATH, and the pending rebound may help close the gap to that high.
Wall Street has been debating in recent weeks just how much Amazon could be hit by increased tariffs. China-based sellers have more than 50% market share on Amazon’s third-party seller marketplace, according to research from MarketPlace Pulse. Additionally, BofA Securities analyst Justin Post wrote last month that tariffs were a “sector negative” for e-commerce. However, the analyst added, “platforms with large third-party selections, such as Amazon or eBay (EBAY), can allow for better substitution and/or for consumers to self-select cheaper items.”
Could Amazon Still Be a Buy: 50% Surge in 2025 Still in Play
Despite the dip, some analysts are immediately trying to spin the stock crash into a buying opportunity for Amazon (AMZN). For Amazon specifically, Citi analysts suggest that the dip and rumors swirling around Amazon buying TikTok could generate fuel for a quick resurgance. Liberation day impacted most of the stock market, with few major companies remaining in the red on Thursday.
Furthermore, Amazon’s e-commerce business is the most consumer-facing segment, but it’s far from the most important. Amazon Web Services (AWS) is arguably the most important division because it produced 58% of the company’s operating profits in 2024.
Correspondingly, AWS won’t be as affected by the tariffs since it’s providing computing power over the cloud to clients. Thus, one of the company’s top revenue sources could still bring huge profits in 2025.
Also Read: Apple (AAPL) Flies in 5 Planes Full of iPhones to Avoid US Tariffs
However, it’s not completely immune from tariffs, either. Management has to get the computing power for its servers from somewhere, and a large majority of chips that power GPUs come from Taiwan, which was hit with a 32% tariff.
All in all, Amazon (AMZN) stock could still rebound and perform very well after the recent hit from the market. AMZN is trading near the bottom of its 52-week range and below its 200-day simple moving average. Analysts at CNN still see a median price climb of 55.42% for Amazon shares over the next year. This would place AMZN up at $270.
Read More