Amazon(AMZN) The Motley Fool·2025-03-09 09:15Core Viewpoint - AI stocks have been leading the market with significant gains, but recent economic concerns and government policies have caused a decline in their performance [1][2][4]. Group 1: AI Market Performance - AI stocks have driven double-digit gains in the S&P 500 and Nasdaq over the past two years, showcasing their potential to enhance company operations and earnings [1]. - The tech-heavy Nasdaq has dropped more than 7% in the past two weeks, primarily due to the decline in AI stocks [4]. Group 2: Economic Concerns - New government policies and tariffs imposed by President Trump on major trading partners like Canada, Mexico, and China are raising concerns about inflation and increased costs for companies manufacturing outside the U.S. [2][3]. - Higher inflation could negatively impact consumer spending, leading to lower revenues for affected companies [3]. Group 3: Company Analysis - Amazon - Amazon has leveraged AI in its e-commerce and cloud computing sectors, enhancing efficiency and customer satisfaction [5]. - Amazon Web Services (AWS) has achieved a 800 million in U.S. commercial contract value, a 134% increase year over year [11]. - Palantir's stock has declined 27% over two weeks, bringing its valuation down and suggesting it may be a good time for growth investors to consider purchasing shares [12].