Stocks edge up, dollar eases as trade-deal sugar rush fades By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2025
0mins
Should l Buy AMZN?
Source: Investing.com
Trade Truce Impact: A temporary trade truce between the U.S. and China has led to a brief rally in global stocks, but investor concerns about the long-term effects of tariffs on the economy persist, resulting in mixed market reactions.
Market Reactions and Economic Outlook: While the dollar initially surged, it lost some momentum as traders adjusted their expectations for Federal Reserve rate cuts, reflecting cautious optimism amid ongoing uncertainties regarding U.S.-China relations and inflation data.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 204.080
Low
250.00
Averages
294.69
High
340.00
Current: 204.080
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.
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- Significant Capex Increase: Amazon plans to ramp up its capital expenditures from $132 billion in 2025 to $200 billion in 2026, primarily for AI data centers and robotics, a strategic investment that will bolster its competitive edge in cloud computing and automation.
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See More
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- AWS Revenue Acceleration: Amazon's AWS segment saw a 24% revenue increase in Q4, reaching $35.58 billion, surpassing the market expectation of $34.93 billion, indicating strong demand for AI infrastructure that is expected to further enhance profitability.
- Significant Capex Increase: Amazon plans to ramp up its capital expenditures from $132 billion in 2025 to $200 billion in 2026, primarily for AI data centers and robotics, a strategic investment that will bolster its competitive edge in cloud computing and automation.
- Strong E-commerce Performance: North American sales rose 10% year-over-year to $127.1 billion, while international sales increased 17% to $50.7 billion, with advertising revenue also climbing 22% to $21.3 billion, showcasing Amazon's robust operational leverage in e-commerce.
- Optimistic Future Outlook: Amazon forecasts Q1 revenue between $173.5 billion and $178.5 billion, reflecting an 11% to 15% growth, and despite the stock dip due to capex plans, analysts view this as a great buying opportunity for long-term investors.
See More
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- Service Expansion: Amazon Pharmacy plans to expand its same-day prescription delivery service to 4,500 cities and towns across the U.S. by the end of 2026, adding nearly 2,000 new communities, significantly enhancing the coverage and convenience of medication delivery.
- New Market Penetration: This expansion will include newly served states such as Idaho and Massachusetts, aiming to provide fast and reliable medication delivery to more customers, addressing the needs of patients in diverse regions.
- Enhanced Patient Experience: John Love, Vice President of Amazon Pharmacy, stated that by combining pharmacy expertise with logistics networks, they aim to remove critical barriers for patients in accessing medications, thereby accelerating the start of treatment and improving overall medication experiences.
- Standard for Digital Pharmacy: Through this expansion, Amazon Pharmacy sets a new standard, emphasizing that patients should not have to choose between speed, cost, and convenience, thereby promoting the widespread adoption of digital pharmacy services.
See More
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- Partnership Termination: Ring has announced the termination of its partnership with Flock Safety, citing that the planned integration would require significantly more time and resources than anticipated, reflecting the company's commitment to privacy concerns.
- Growing Public Pressure: This decision comes amid increasing scrutiny on tech companies regarding their collaborations with federal agencies, particularly after Salesforce and Google employees urged their companies to sever ties with ICE, highlighting a broader movement for corporate accountability.
- Ongoing Privacy Controversy: The partnership faced significant backlash, especially after Ring's Super Bowl ad promoting a 'Search Party' feature was criticized as a 'surveillance nightmare,' indicating heightened public sensitivity towards surveillance technologies.
- Inactive Collaboration: Despite the partnership announcement, Ring's spokesperson clarified that no videos were ever shared between the two services, indicating that the collaboration was never operational.
See More
Alphabet and Amazon: Top Stocks to Buy Now
- Google Search Engine Advantage: Alphabet (GOOGL) holds a dominant position as the primary search engine globally, leveraging AI to drive search growth, with its cloud computing revenue surging 48% last quarter, indicating strong market demand and profitability.
- Capital Expenditure Plans: Alphabet plans to invest between $175 billion and $185 billion in capital expenditures in 2023, particularly on its proprietary TPU chips, which provide a cost advantage in the AI sector, thereby enhancing its return on investment.
- Amazon E-commerce Growth: Amazon (AMZN) drives a 24% increase in operating income in its North American e-commerce business, with a 10% rise in sales, showcasing its dominant market position and operational efficiency through a robust logistics network.
- Cloud Computing Market Leadership: Amazon Web Services (AWS) sees a 24% revenue growth last quarter, marking an acceleration in its cloud computing sector, while committing to $200 billion in capital expenditures in 2023 to meet the rising demand for infrastructure and AI services.
See More
U.S. Stocks Plunge as Tech Sector Weighs Down Market
- Tech Sector Retreat: U.S. stocks experienced a significant decline on Thursday, with the S&P 500 down 1.57%, the Dow Jones down 1.34%, and the Nasdaq 100 down 2.04%, primarily driven by a sell-off in the Magnificent Seven tech stocks, indicating concerns over the profitability outlook in the tech sector.
- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
- Positive Earnings Season: Despite the overall market downturn, over 76% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings projected to grow by 8.4%, indicating strong corporate profitability that may provide support for the market.
See More
Amazon Stock Drops Amid AI Spending Concerns
- Stock Decline: Amazon (AMZN) closed at $199.6 on Thursday, down 2.20%, reflecting investor concerns over the company's $200 billion AI infrastructure spending plan, which may impact future profitability.
- Surge in Trading Volume: The trading volume reached 78.6 million shares, about 70% above the three-month average of 46.3 million shares, indicating heightened market attention and anxiety regarding Amazon's future developments.
- Analyst Target Downgrade: Daiwa Securities cut Amazon's stock price target from $300 to $280, primarily due to concerns over execution risks, which could affect investor confidence in its long-term growth prospects.
- Historical Context: Since its IPO in 1997, Amazon's stock has grown 203,746%, and despite facing similar spending concerns in the past, the company's previous investment returns have earned it market trust, suggesting that the current stock slide may present a good buying opportunity for investors.
See More
