Amazon (AMZN) Seeks to Cut Supplier Discounts Amid Tariff Adjustments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Supplier Discount Adjustments: Amazon is requesting discounts from some suppliers of up to 30% to mitigate the impact of Trump’s tariffs, despite previously agreeing to raise prices to ensure minimum margins, indicating a new strategy in cost control.
- Accelerated Negotiations: The company has expedited talks with certain suppliers by several weeks and is considering a January 1 deadline in some cases, aiming to quickly adapt to market changes and reduce trade volatility risks.
- Risk Transfer on Tariffs: Amazon seeks to offload further trade volatility risks onto suppliers by requiring them to take responsibility for tariffs on goods sold, a strategy that could impact suppliers' pricing and profit margins.
- Shifting Market Sentiment: Although Amazon's stock has gained over 11% in the past year, retail sentiment on Stocktwits has shifted from 'bullish' to 'neutral', reflecting uncertainty about the company's future profitability.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.71 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
40 Buy
3 Hold
0 Sell
Strong Buy
Current: 246.470
Low
250.00
Averages
294.71
High
340.00
Current: 246.470
Low
250.00
Averages
294.71
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
