Is Amazon a Recession-Resistant Stock? Here's What History Says.

Core Viewpoint - Amazon has demonstrated strong performance during the bull market, with a 44% gain last year, driven by investments in artificial intelligence and its robust cloud computing and e-commerce businesses [1] Group 1: Economic Resilience - Questions about the economy and potential impacts from tariffs raise concerns about Amazon's ability to withstand economic downturns [2] - The concept of "recession-resistant" stocks is highlighted, suggesting that companies capable of managing tough times should be considered for investment [2] Group 2: Historical Performance - Amazon's evolution from an online bookseller to a complex global business with significant earnings allows it to potentially handle recessions differently than in the past [4][5] - Historical performance during past recessions shows that while Amazon's stock fell during these periods, it rebounded strongly afterward, indicating resilience [10] Group 3: Inflation Management - Amazon faced challenges during high inflation, resulting in its first annual loss in nearly a decade, but responded by revamping its cost structure and streamlining operations [12] - The transition to a regional fulfillment model has helped reduce costs and improve service efficiency, positioning Amazon favorably for future economic slowdowns [12][13] - Historical strength during recessions, combined with recent operational improvements, reinforces Amazon's status as a strong candidate for recession-resistant investment [13]