Amazon’s stock DIP has been bustling with investors as the e-commerce giant’s shares fell by about 13% during the market sale last week. This massive decline was driven by uncertainty in the US market and the economy as a whole following Trump’s tariff announcements. Many investors were mixed up about whether to buy AMZN DIP, as they are the top stocks in the US market. Stock has dropped just 25% from ATH, and pending rebounds could help bridge the gap with that high.
Wall Street has been debating how much Amazon will be hit by the tariff rise in recent weeks. According to a Marketplace Pulse research, China-based sellers have over 50% market share in Amazon’s third-party sellers market. Additionally, BOFA securities analyst Justin Post wrote last month that tariffs are “sector negative” for e-commerce. However, analysts say, “Platforms with large third-party choices, such as Amazon and eBay (eBay), can help better alternatives and consumers choose cheaper items.”
Amazon may still buy: 2025’s 50% surge is still playing
Despite the dip, some analysts are about to spin stock crashes on Amazon (AMZN) purchase opportunities soon. In particular, for Amazon, City analysts suggest that swirling dips and rumors around Amazon buying Amazon can generate fuel for a quick revival by buying Tiktok. The release day affected 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 segment, but far from the most important. Amazon Web Services (AWS) is undoubtedly the most important division as it generated 58% of the company’s operating profit in 2024.
In response, AWS provides clients with cloud computing power, so it is not affected by tariffs. Therefore, one of the company’s top revenue streams could still bring about significant profits in 2025.
However, it is not completely immune from tariffs either. Management had to get the computing power of the server from somewhere, and the majority of chips in the power GPU came from Taiwan and was hit by a 32% tariff.
Overall, Amazon (AMZN) stocks could still perform very well after their recent hit from the market. AMZN is below the simple 200-day moving average near the bottom of the 52-week range. CNN analysts are still seeing a median price rise of 55.42% against Amazon stocks over next year. This will bring AMZN to $270.
