TLDR
- Amazon’s stock is down over 10% year-to-date amid market volatility and trade tensions
- The company reported Q4 2024 revenue of $187.79 billion (up 10.49% YoY) with EPS of $1.86, exceeding analyst expectations
- Evercore ISI maintains an Outperform rating with a $270 price target, suggesting a 40% upside potential
- Amazon sellers are adapting to potential tariffs and exploring TikTok Shop despite its currently minor contribution to sales
- Wall Street strongly favors Amazon with 45 Buy and 1 Hold ratings, with a 12-month average price target of $269.85
Amazon.com, Inc. (NASDAQ) has faced market headwinds in 2025, with its stock down over 10% year-to-date. This decline comes amid broader market volatility triggered by several factors including the Trump administration’s trade policies and global tensions.
The e-commerce and cloud computing giant reported impressive fourth quarter 2024 results, with revenue reaching $187.79 billion. This represents a 10.49% increase year-over-year and beat analyst estimates by $563.26 million.
The company’s earnings per share came in at $1.86, exceeding expectations by $0.38. Operating income showed even stronger growth, rising 61.6% year-over-year to $21.2 billion.
Amazon CEO Andy Jassy highlighted the company’s pricing strategy during the earnings call. “Customers continue to want Amazon to be the place they rely on for sharp pricing,” Jassy stated.
According to Jassy, consumers saved more than $15 billion through Amazon’s low everyday prices and special events like Prime Big Deal Days and Black Friday. He also noted that Federal’s annual pricing study found Amazon had the lowest online prices for the eighth consecutive year.
This marks the eighth consecutive quarter in which Amazon has achieved margin expansion in both its North America and International segments. This consistent performance demonstrates the company’s ability to grow while improving profitability.
Market Pressures
Despite these strong results, Amazon shares have not been immune to market pressures. The company’s stock has declined more than 10% since the beginning of 2025, reflecting broader market concerns.
Market volatility has increased due to several factors. The DeepSeek AI launch in China shook markets early in 2025. The US government’s implementation of trade tariffs across China and Europe added to investor uncertainty.
President Trump’s recent suggestion that his proposed reciprocal tariff regime would offer “flexibility” provided some relief to investors. However, it remains unclear what this flexibility would entail in practice.
Amazon sellers and manufacturers are currently collaborating to mitigate the impact of potential tariffs on pricing strategies. Both parties are considering how to distribute the increased costs should new tariffs be implemented.
Analysts View
On Monday, Evercore ISI affirmed a positive outlook on Amazon shares, maintaining an Outperform rating and a $270.00 price target. The firm’s assessment reflects confidence in Amazon’s market position and growth potential.
Top investor Julian Lin also remains bullish on Amazon’s prospects. Lin, among the top 2% of TipRanks’ stock professionals, believes that Amazon can serve as a “safe harbor during times of trouble.”
Lin points to Amazon’s consistent top-line growth and aggressive margin expansion as key factors supporting his positive outlook. He also notes that consensus estimates project double-digit growth in the years ahead.
Wall Street analysts broadly share this optimistic view. With 45 Buy and only 1 Hold rating, Amazon maintains a Strong Buy consensus among analysts. The 12-month average price target of $269.85 would represent a 40% gain from current levels.
Amazon commands a market capitalization of $2.04 trillion with 11% year-over-year revenue growth. The company’s financial health score of 2.93 (rated “GOOD” by InvestingPro) and moderate debt levels suggest it is well-positioned to weather current market challenges.
Amazon sellers are adapting to the evolving retail landscape by exploring new platforms like TikTok Shop. While TikTok currently makes a minor contribution to Gross Merchandise Volume compared to other e-commerce channels, sellers without TikTok Shop engagement are experiencing a fear of missing out.
Sellers are also recognizing the benefits of driving external traffic to their Amazon listings. This strategy can enhance audience reach, improve SEO and ad rankings, and foster customer loyalty through repeat purchases.
Amazon sellers are utilizing Amazon Attribution, a free tool that measures the effectiveness of off-Amazon marketing campaigns in driving on-Amazon activity. This tool helps sellers optimize their external marketing efforts.
In preparation for possible economic challenges, Amazon sellers are contemplating strategies to cope with a potential recession. These strategies include significant reductions in marketing budgets, with some viewing a market shakeout as a potential opportunity.
Amazon continues to invest aggressively in building out its AI infrastructure. This investment aims to ensure the company maintains its central position in future industries and technologies.
