3 Reasons to Buy Amazon Stock Like There's No Tomorrow
The S&P 500 is making its way back up from a tariff-included plummet, but not all of its stocks are doing as well. Amazon (NASDAQ: AMZN) stock is down 8% year-to-date on May 22, as investors continue to worry about how the company will be affected by tariffs.CEO Andy Jassy addressed how the company could be affected and how it's responding during the first-quarter earnings call on May 1, which was prior to the easing of tariffs on May 12. He noted several points in Amazon's favor. Most of its e-commerce sales are the small, cheaper essentials that people have to buy anyway. It has a huge selection, so customers should still be able to find what they need on the platform, even if they switch brands or sellers. During times of uncertainty, customers are also likely to buy from a retailer they trust, and Amazon has built up experience-based trust with its hundreds of millions of Prime members and other shoppers.The market took that with a grain of salt. Retailers are sending mixed messages about how they're going to manage with higher tariffs, and investors are waiting to see how the fees will affect Amazon's performance.Continue reading
The S&P 500 is making its way back up from a tariff-included plummet, but not all of its stocks are doing as well. Amazon (NASDAQ: AMZN) stock is down 8% year-to-date on May 22, as investors continue to worry about how the company will be affected by tariffs.
CEO Andy Jassy addressed how the company could be affected and how it's responding during the first-quarter earnings call on May 1, which was prior to the easing of tariffs on May 12. He noted several points in Amazon's favor. Most of its e-commerce sales are the small, cheaper essentials that people have to buy anyway. It has a huge selection, so customers should still be able to find what they need on the platform, even if they switch brands or sellers. During times of uncertainty, customers are also likely to buy from a retailer they trust, and Amazon has built up experience-based trust with its hundreds of millions of Prime members and other shoppers.
The market took that with a grain of salt. Retailers are sending mixed messages about how they're going to manage with higher tariffs, and investors are waiting to see how the fees will affect Amazon's performance.
