From Nasdaq: 2025-05-12 11:49:00

Shares of Amazon (NASDAQ: AMZN) surged nearly 8% after the U.S. and China agreed to a 90-day pause on high tariff rates. Amazon is heavily reliant on China for business, with 30% of its gross merchandise value coming from the country, and 14% of advertising spend in 2024 originating from Chinese advertisers.

The tariff agreement between the U.S. and China is a positive development for Amazon, which had been impacted by the trade war. Analysts believe the news could lead to higher earnings estimates for Amazon in the future. Amazon’s position in e-commerce, cloud, and AI sectors makes it well-positioned for growth in the post-tariff era.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon. The views expressed in this article are the author’s and do not necessarily reflect those of Nasdaq, Inc.



Read more at Nasdaq: Why Amazon Stock Is Leading the “Magnificent Seven” Higher Today After U.S.-China Trade Deal