Is Amazon Stock (AMZN) Still a Buy After Tariffs?
Amazon (AMZN) stock remains a standout investment despite President Donald Trump's ongoing trade war. At least, that's what five-star Wedbush analyst Scott Devitt argued in a note to clients. According to Devitt, 'Amazon is mispriced in comparison with the companies it competes with.' The analyst also called the current AMZN stock valuation 'nonsensical.'
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The Wedbush analyst pleased Amazon investors with a reiterated Outperform rating and a $280 price target, representing a potential 63.46% upside for AMZN shares. Devitt backed up his bullish stance on Amazon by pointing out that its retail business is expanding faster than Walmart's (WMT) or Costco's (COST).
There's also Amazon's artificial intelligence (AI) business to consider. The e-commerce giant is quickly growing in the AI space. That's a boon to it as analysts, such as Bank of America's Vivek Arya, have argued that companies with strong ties to AI will benefit despite Trump's tariffs. Its cloud computing and data centers are another potential aid to the company.
AMZN Stock Movement Today
Amazon is among the stocks that have started to recover from President Trump's trade war. It helps that the market is beginning to bounce back from Wednesday's Liberation Day event today on news of a potential 90-day pause on tariffs.
For AMZN, this has the stock up 1.05% as of Monday afternoon. That's a welcome change from its 9.14% drop over the last five days and its 21.3% decrease year-to-date.
Is AMZN Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus estimate for Amazon is Strong Buy, based on 45 Buy and one Hold ratings over the last three months. With that comes an average price target of $268.05, representing a potential 55.32% upside for AMZN stock.
See more AMZN stock analyst ratings
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