From Financial Modeling Prep: 2025-04-21 09:36:00

Amazon.com (NASDAQ:AMZN) shares dropped 2% pre-market as Raymond James downgraded it to Outperform, citing margin risks and a lower price target of $195. Analysts point out Amazon’s exposure to China and U.S. rural delivery services as potential drags amidst supply chain diversification and tariff threats. Other tech names offer clearer ROI visibility.

Raymond James remains positive on Amazon’s long-term AI and infrastructure initiatives but warns of potential EBIT pressure in 2025 and 2026. The firm believes the market is underestimating these risks, prompting the downgrade. Amazon’s reliance on China for GMV and ad revenue, as well as U.S. rural delivery services, are factors in the decision.

Despite long-term fundamentals being strong, Raymond James suggests that names like Meta, Uber, and MercadoLibre offer clearer ROI visibility and near-term catalysts. The report highlights the potential drag from China and U.S. rural delivery services as Amazon diversifies its supply chain and logistics network in response to macro uncertainty and tariff threats.



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