Mark Cuban warns of tariff impact on Amazon, but diversification may help mitigate risks.

From Nasdaq: 2025-04-29 21:23:00

Investors are cautious about the new tariff program’s impact on the economy. Billionaire Mark Cuban predicts trouble for Amazon (NASDAQ: AMZN) due to tariffs affecting Chinese sellers. Third-party sellers account for a significant portion of Amazon’s revenue, making them vulnerable to tariff changes.

Amazon faces uncertainty as tariffs could impact its e-commerce business. Strategies to mitigate the impact include diversifying the supply chain and absorbing extra costs to retain customers. With over 200 million Prime customers, Amazon is unlikely to see a significant drop in sales due to tariffs.

Despite the potential challenges, Amazon has diversified revenue streams beyond e-commerce. Amazon Web Services (AWS) and advertising are less exposed to tariffs. Investors are advised to consider buying Amazon stock at its current price with a forward P/E ratio of 25.

Don’t miss out on the potential investment opportunity with the “Double Down” stock recommendation. Historical data shows substantial returns for investors who followed similar recommendations in the past. Join Stock Advisor for alerts on upcoming opportunities for growth with promising companies.



Read more at Nasdaq: Mark Cuban Thinks Continued Tariffs Spell Trouble for Amazon. Time to Buy This Amazon Dip or Bail Out?