Two major banks lower price targets on Amazon (AMZN) stock due to tariff concerns.

From Yahoo Finance: 2025-04-09 11:43:00

Two major banks, Mizuho and Bank of America, have lowered their price targets on Amazon (AMZN) stock due to concerns about tariffs impacting the company’s retail unit. Despite this, both banks maintain positive outlooks on Amazon’s overall performance. Mizuho believes Amazon’s cloud business may face challenges, but the company has the strength to overcome tariff impacts.

Mizuho reduced its price target on AMZN to $255 from $285 but kept an Outperform rating on the shares. The bank warns that about 50% of Amazon’s cloud unit customers could reduce spending due to tariffs. However, Mizuho remains optimistic about the long-term prospects of Amazon’s cloud business.

Bank of America cut its price target on AMZN to $225 from $257 but maintained a Buy rating. The bank cautions that higher tariffs could lead to increased costs for Amazon’s retail unit. Despite challenges for Amazon’s cloud business, Bank of America believes suppliers can help reduce costs.

Both banks acknowledge Amazon’s potential but see greater promise in AI stocks for higher returns. They believe AI stocks have outperformed Amazon and other popular stocks. If you’re interested in a promising AI stock trading at less than 5 times earnings, check out the report on the cheapest AI stock.



Read more at Yahoo Finance: Two Banks Lower Their Price Targets on Amazon (AMZN) Stock