From Nasdaq: 2025-05-08 04:05:00

Amazon (NASDAQ: AMZN) saw a stock dip last week due to weak guidance and tariff concerns, despite strong growth. Second-quarter sales were robust, with a 10% increase year over year to $155.57 billion, surpassing expectations. However, operating income guidance for the next quarter fell short, citing potential tariff impacts and costs related to the Kuiper broadband launch.

While the market reacted negatively to Amazon’s outlook, CEO Andy Jassy highlighted the company’s strengths amidst tariff uncertainties. Amazon’s focus on essential products, extensive product assortment, and customer trust position it well in times of volatility. Additionally, Amazon Web Services (AWS) revenue increased 17% year over year, showcasing its growth potential beyond e-commerce.

Despite the recent stock drop, Amazon’s P/E ratio remains steady around 30, indicating a fair valuation. With management’s optimistic stance on tariffs and long-term opportunities, the stock may rebound soon. Investors with a long-term horizon and interest in Amazon stock might find this dip to be a favorable buying opportunity for potential future gains.



Read more at Nasdaq: Amazon Sell-Off: Why Now May Be the Best Time to Buy Amazon Stock