From Nasdaq: 2025-04-03 16:04:00

Trump’s tariffs caused the stock market to plummet, with the S&P 500 closing almost 5% lower. Amazon (NASDAQ: AMZN) took a big hit, dropping 9% and erasing 2024 gains of over 30%. However, Amazon has a history of recovering from significant price drops, making it a potential buying opportunity at a discounted price.

Long-term Amazon investors have seen impressive returns despite past price drops. Holding onto Amazon stock since 2007 could have resulted in a $388,000 profit today. Amazon’s ability to bounce back from market challenges, coupled with its innovative approach to business, suggests that it may outperform broader market trends in the long run.

While the market may be experiencing turbulence due to tariffs, seasoned investors recognize these moments as potential buying opportunities. Amazon’s past performance and resilience make it an attractive investment choice, especially when the stock is trading at a discount. Timing the market perfectly is difficult, but holding onto quality stocks like Amazon can lead to substantial gains over time.

Before investing in Amazon, consider other top stock picks recommended by The Motley Fool’s Stock Advisor team. While Amazon may not be on their list, their selections have the potential to generate significant returns for investors. Joining Stock Advisor provides access to expert insights, regular updates, and new stock picks, with historical returns outperforming the S&P 500 since 2002.

Disclosure: Amazon’s resilience and potential for growth make it an appealing investment choice, and while past performance is not indicative of future results, long-term investors may find value in holding Amazon stock during market downturns.



Read more at Nasdaq: Amazon’s Stock Takes the Tariff Tumble. Here’s Why I’m Still Holding.