Tariffs Affect Everyone, But Perhaps No Company More Than Amazon (Nasdaq: AMZN)
24/7 Wall St. : Watch the Video Transcript: [00:00:04] Doug McIntyre: The whole tariff things touches a lot of people, but, to say the least, if, you look at a company that touches maybe the most people in the United States is Amazon. I mean, who doesn’t have an Amazon account? Amazon has a […] The post Tariffs Affect Everyone, But Perhaps No Company More Than Amazon (Nasdaq: AMZN) appeared first on 24/7 Wall St..
24/7 Wall St. Key Points:
Key Points
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Amazon (NASDAQ: AMZN) risks losing both first-party and third-party sales as tariffs on Chinese goods force suppliers to cancel orders and potentially exit the platform.
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The company faces a dual impact from tariffs—on its own imported inventory and on vendor-supplied goods, threatening its core e-commerce revenue stream.
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Continued trade tension may also pressure Amazon’s underperforming international segment, compounding challenges beyond its strong AWS business.
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Watch the Video
Transcript:
[00:00:04] Doug McIntyre: The whole tariff things touches a lot of people, but, to say the least, if, you look at a company that touches maybe the most people in the United States is Amazon. I mean, who doesn’t have an Amazon account? Amazon has a problem. And that is, is that its vendors are going to get hit by these tariffs.
[00:00:26] Doug McIntyre: Yep. And do those people dial back? Do they drop out? if I’m somebody who’s selling, inexpensive watches. $50 watches, right? And all of a sudden I was making $32 on ’em, and now I’m gonna make $49 before shipments. And Amazon’s my primary conduit to the consumer. I may say I ain’t, and Amazon obviously takes a piece of the action.
[00:00:57] Doug McIntyre: I may just close up for a while and wait.
[00:01:00] Lee Jackson: Well, and Amazon has been canceling orders for all sorts of stuff that they buy from China. I mean, beach chairs and small air conditioners and there’s countless items that I’ve seen and canceling stuff is probably the worst thing for anybody, to, even imagine.
[00:01:24] Lee Jackson: Yeah. So Amazon, that’s, a retailer or a supplier out of them, out of China. So yeah, that, when I, read that the other day, I was like, wow, and they get.
[00:01:38] Doug McIntyre: In terms of what they do, in terms of what they purchase and then they get hit in terms of what their third party resale.
[00:01:47] Lee Jackson: There’s a double whammy there.
[00:01:49] Doug McIntyre: Yeah. Amazon has a potential double whammy when it comes to what I would describe, I know people like AWS, but Amazon’s primary business really is still e-commerce and, it’ll get hit.
[00:02:03] Doug McIntyre: What’s interesting, and I don’t know enough about this, people ignore Amazon International. If you look at the Amazon, they shouldn’t. There are three parts to it. There’s the domestic part, there’s the international part, which never makes any money, and there’s a WSI wonder what it does to Amazon’s international business if these tariffs get really bad.
[00:02:27] Lee Jackson: Well, it, it, undoubtedly could hurt it. And it’s interesting how. Amazon of big tech. all of Big Tech has their venue, their silo of huge income. And Amazon, if they can continue to build, add items to their program line, if they do add TikTok like we’ve discussed in the past or things like that, this is just another feather for a cap that’s extremely strong.
[00:03:00] Lee Jackson: Yeah, it is. But canceling product. Canceling product. There’s somebody in China who’s gonna, who’s, they’re not gonna be happy over that.
[00:03:09] Doug McIntyre: Nope, not at all.
The post Tariffs Affect Everyone, But Perhaps No Company More Than Amazon (Nasdaq: AMZN) appeared first on 24/7 Wall St..
