Down 20% This Year, Here Are 3 Reasons Why I'm Still Loading Up on Amazon Stock

Core Viewpoint - The stock market has experienced significant volatility following President Trump's tariff announcement, particularly impacting major tech stocks like Amazon, which has seen a notable decline in its share price Company Analysis - Amazon's stock has dropped over 10% since the tariff announcement and over 20% since the beginning of the year, primarily due to a new 34% tax on Chinese imports [2] - Despite the challenges posed by tariffs, Amazon Web Services (AWS) remains a strong profit driver, contributing $39.8 billion in operating income in 2024, which accounted for 58% of Amazon's total operating income [5] - AWS is expected to face minimal impact from the tariffs as it primarily provides digital services, although there may be slight cost increases for imported parts necessary for data center operations [7][8] - The potential for businesses to stockpile products in the U.S. could lead to increased reliance on Amazon's logistics services, such as Fulfillment by Amazon (FBA) and Supply Chain by Amazon (SBA) [9][10] - Amazon's logistics network is positioned to capitalize on the growing e-commerce industry, potentially opening new revenue streams [11] Investment Perspective - Historically, buying Amazon's stock during price dips has proven to be a successful long-term strategy, with the stock increasing nearly 10,000% over the past 20 years and averaging over 25% annual returns in the last decade [12][13] - The company has demonstrated resilience in the face of market challenges, suggesting that current price declines may present a buying opportunity for long-term investors [15]