Amazon stock down 26% due to trade war with China, but long-term investors see buying opportunity

From Nasdaq: 2025-04-20 06:53:00

A trade war between China and the United States has caused fear among investors. Amazon (NASDAQ: AMZN) is feeling the impact, with its stock down 26% from all-time highs due to its heavy reliance on Chinese sellers. Despite this disruption, long-term investors see a buying opportunity in this AI winner.

Amazon’s retail profits come from fees, advertising, and Prime subscriptions, generating $388 billion in revenue in 2024. While the tariff war may disrupt its seller base, the company’s diversified revenue sources and e-commerce tailwinds suggest long-term resilience.

Amazon Web Services (AWS) is a key player, generating $108 billion in revenue in 2025. With AI spending accelerating, AWS is poised for significant growth, potentially reaching $80 billion in operating income over the next five years. This growth makes Amazon stock an attractive buy for investors.

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Read more at Nasdaq: Tariff Turmoil: One Artificial Intelligence (AI) Stock Down 26% to Buy Hand Over Fist Right Now