Amazon CEO Jassy States Trump's Tariffs Are Affecting Item Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Tariff Impact Emerges: Amazon CEO Andy Jassy stated that President Trump's tariffs are beginning to creep into the prices of certain items, as Amazon and its third-party sellers had pre-purchased inventory to mitigate tariff effects, but most of that stock ran out last fall.
- Pricing Strategy Shift: Jassy noted that some sellers are opting to pass on the increased costs to consumers, resulting in price hikes, while others are absorbing costs to drive demand, indicating a market adaptation to the tariff impacts.
- Tight Profit Margins: Jassy highlighted that retail operates on mid-single-digit margins, and with costs rising by 10%, there is little room for absorption, underscoring the increasing pressure tariffs place on retailers.
- Challenges in Price Maintenance: Despite Amazon's efforts to keep prices as low as possible, Jassy acknowledged that in some cases, price increases may be unavoidable, reflecting the complex implications of tariffs on consumers and the market.
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 294.69 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.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 239.120
Low
250.00
Averages
294.69
High
340.00
Current: 239.120
Low
250.00
Averages
294.69
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.
