Prediction: Amazon Stock Will Be a Long-Term Winner Despite Economic and Tariff Uncertainty
Ahead of Amazon's (NASDAQ: AMZN) first-quarter earnings report, there was certainly some angst among investors. This was understandable, as both tariffs and a weaker economy could negatively impact the company's e-commerce operations.Ahead of its report, one Wall Street analyst said that Amazon would have to "eat price" or lose market share. With the company forecasting sales in line with Wall Street estimates but operating income well below, it appears Amazon is willing to indeed eat some price. It stated that there was never a more important time to keep prices low.That said, Amazon highlighted that besides itself, it also has a diverse third-party seller base that can offer items across price points. It has also taken some proactive measures by stockpiling inventory ahead of the tariffs. Ultimately, Amazon said it is planning for various economic conditions while focusing on what it can control to protect the customer experience.Continue reading
Ahead of Amazon's (NASDAQ: AMZN) first-quarter earnings report, there was certainly some angst among investors. This was understandable, as both tariffs and a weaker economy could negatively impact the company's e-commerce operations.
Ahead of its report, one Wall Street analyst said that Amazon would have to "eat price" or lose market share. With the company forecasting sales in line with Wall Street estimates but operating income well below, it appears Amazon is willing to indeed eat some price. It stated that there was never a more important time to keep prices low.
That said, Amazon highlighted that besides itself, it also has a diverse third-party seller base that can offer items across price points. It has also taken some proactive measures by stockpiling inventory ahead of the tariffs. Ultimately, Amazon said it is planning for various economic conditions while focusing on what it can control to protect the customer experience.
