Despite challenges from new tariffs, optimism remains for Amazon due to diversified revenue streams

From Nasdaq: 2025-04-10 09:45:00

President Trump’s new tariff plan has caused chaos in the stock market, with major indexes plunging. Tech stocks like Amazon (NASDAQ: AMZN) took a hit, down over 10% since the announcement. However, there are reasons to stay optimistic about Amazon’s future despite the challenges posed by the tariffs.

Amazon’s e-commerce platform relies heavily on third-party sellers, making it less vulnerable to the new 34% tax on Chinese imports. Additionally, Amazon Web Services (AWS) accounts for a significant portion of Amazon’s profits and is expected to navigate the tariffs relatively unscathed due to its digital service nature.

As businesses may stockpile products in the U.S. to avoid tariff costs, Amazon’s logistics services, such as FBA and SBA, could see increased demand. This could be a catalyst for Amazon to capitalize on its logistics network and expertise, opening up new revenue streams and potentially mitigating the impact of the tariffs.

Despite recent stock price drops due to global tariff hikes, Amazon has a history of resilience and long-term success. Its stock has seen significant growth over the past two decades, averaging over 25% annual returns in the last decade. Buying the dip on Amazon could prove to be a wise long-term investment strategy.



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