Down 25% From Its All-Time High, Is Amazon a Buy Right Now?

Core Viewpoint - Amazon is facing significant challenges due to recent tariffs and a market sell-off, impacting its e-commerce business while its cloud computing segment, AWS, remains a critical growth driver [1][2][5]. Tariffs Impact - The recent tariff changes, including the closing of de minimis exemptions, will increase costs for Amazon's third-party sellers, potentially harming sales on its platform [2][3]. - The cost of tariffs will be absorbed by suppliers, sellers, and consumers, affecting pricing dynamics across the board [9]. AWS Performance - AWS is crucial for Amazon, generating 58% of the company's operating profits in 2024, and is less affected by tariffs compared to the e-commerce segment [5][6]. - While AWS benefits from the growing demand for cloud computing, it is not entirely immune to tariffs, particularly regarding the costs of hardware and chips sourced from Taiwan [6][7]. Market Outlook - Despite the current market sell-off and tariff implications, the long-term outlook for Amazon remains positive due to the ongoing migration to cloud services and AI workloads [8]. - The recommendation is to consider buying Amazon stock after the market stabilizes, as it may present a significant buying opportunity at a discount [10].