Supreme Court Rules Trump's Tariffs Invalid, Boosting Retail Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy AMZN?
Source: Fool
- Tariff Ruling Impact: The Supreme Court's ruling that Trump lacked authority to impose tariffs led to a 3% and 4% rise in Amazon and PDD stocks respectively, reflecting market optimism for retail stocks.
- Sales Channel Advantage: Amazon generated 24% of its net sales from third-party seller services in 2025, many of which are based in China, and the elimination of tariffs will enable these sellers to lower prices and attract more consumers, enhancing market competitiveness.
- Cross-Border E-Commerce Opportunity: PDD allows Chinese merchants to sell products to the U.S. via its Temu platform, and the removal of tariffs will boost international sales, although they still face the newly implemented global 15% tariff.
- Cautious Short-Term Outlook: Despite the short-term rally in retail stocks due to the ruling, the lack of reinstatement of the de minimis rule and the implementation of new global tariffs suggest that investors should remain cautious about future gains.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 210.000
Low
175.00
Averages
280.01
High
325.00
Current: 210.000
Low
175.00
Averages
280.01
High
325.00
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.
Analysis of Amazon's 10% Stock Decline
- Sales Growth: In 2025, Amazon's net sales increased by 12%, up from 11% in 2024, indicating resilience in its e-commerce business despite stock price declines, which may attract more investor interest moving forward.
- Cloud Business Performance: Amazon Web Services (AWS) is growing significantly faster than its e-commerce segment, driven by the expanding AI market that encourages more companies to invest in cloud infrastructure, thereby enhancing Amazon's profitability and market competitiveness.
- Investment Impact: Amazon plans to invest up to $200 billion in its cloud and AI infrastructure, a substantial investment that may pressure stock prices in the short term but is expected to strengthen its market position and profitability in the long run.
- Future Outlook: Analysts project Amazon's revenue and EPS to grow at CAGRs of 12% and 18% from 2025 to 2028, and if the stock trades at a 25 P/E ratio by 2028, it could rise 40% over the next two years, highlighting its long-term investment potential.
See More
Amazon Increases Investment in Spain to €33.7B for AI and Data Centers
- Investment Expansion: Amazon has increased its total investment in Spain to €33.7 billion ($39.8 billion), adding €17 billion to enhance the number of data centers and advance its artificial intelligence initiatives, demonstrating a long-term commitment to the Spanish market.
- Job Creation: This investment is expected to support approximately 29,900 full-time jobs, with 6,700 positions directly created by Amazon, directly boosting local economic growth and enhancing community employment levels.
- Infrastructure Development: The new investment will support the development of Amazon Web Services (AWS) in the Aragón region of Spain, strengthening local digital infrastructure and enabling businesses and organizations to innovate and grow in cloud computing and AI.
- Sustainability Commitment: Amazon stated that this investment focuses not only on economic benefits but also on promoting water stewardship and carbon-free energy projects, reflecting the company's strategic goals in environmental sustainability.
See More
AWS Data Centers Hit by Drone Strikes in UAE
- Data Center Damage: Amazon Web Services (AWS) reported that two of its data centers in the UAE and one facility in Bahrain were damaged by drone strikes, indicating a direct threat to operations due to the unstable security situation in the Middle East.
- Fire and Structural Damage: The strikes caused structural damage to the facilities, disrupted power delivery, and resulted in fire incidents, necessitating firefighting efforts that further delayed service restoration.
- Challenges in Service Recovery: While AWS is working to restore services in the affected areas, the nature of the physical damage suggests that recovery will be prolonged, prompting customers to take measures to mitigate the impacts of the ongoing conflict.
- Delivery Delay Warnings: Amazon also warned customers in the Middle East of potential delivery delays as Iran targeted the region with missile and drone strikes, exacerbating logistical uncertainties in the area.
See More
Amazon Data Centers Hit by Drone Strikes
- Facility Damage: Amazon Web Services (AWS) reported that two data centers in the UAE and one in Bahrain were taken offline due to drone strikes, significantly impacting service availability and stability in the region.
- Damage Assessment: The strikes caused structural damage and power disruptions, leading to fire incidents, with AWS indicating that the recovery process will be prolonged due to the complex nature of the physical damage.
- Service Impact: Several applications, including AWS's EC2 virtual servers, S3 storage service, and DynamoDB database service, experienced elevated error rates and degraded availability, affecting customers' workloads in the impacted areas.
- Customer Advisory: AWS advised customers in the Middle East to take steps to mitigate the impacts of the conflict, such as backing up data or migrating workloads to other AWS regions, in anticipation of potential instability in the future.
See More
Netflix Stock Rises as Analysts Resume Coverage and Strategic Decisions Pay Off
- Stock Price Increase: Netflix closed at $97.09 on Monday, up 0.88%, reflecting investor approval of management's decision to walk away from the Warner Bros. Discovery acquisition, thereby boosting market confidence.
- Surge in Trading Volume: The trading volume reached 78.8 million shares, approximately 53% above the three-month average, indicating heightened investor interest and engagement regarding the company's growth potential.
- Analyst Coverage Resumed: JPMorgan resumed coverage with an Overweight rating and a $120 price target, highlighting content strength and ad-tier traction, with an expectation of reaching around $11 billion in free cash flow by 2026.
- Clear Strategic Positioning: Netflix's decision positions it as a platform focused on monetization and operating leverage rather than consolidation, with investors keenly watching for ad-tier growth and margin expansion to confirm sustainable free cash flow without major acquisitions.
See More
Amazon's Stock Dip: A Buying Opportunity?
- Stock Price Decline: As of March 2, Amazon's stock has fallen 9% and briefly dipped below $200, currently hovering near this level, which may attract growth investors despite its market cap exceeding $2 trillion.
- AI Investment Concerns: Amazon plans to spend up to $200 billion on capital expenditures in the coming year, which is higher than expected and has raised investor concerns about the return on AI investments, putting pressure on the stock price.
- Overreaction in the Market: Despite the high spending pressure, Amazon's online marketplace and cloud business have significant AI application potential, suggesting that the market's downward adjustment of its valuation may be an overreaction, with the stock price now at relatively low levels.
- Long-term Investment Value: Over the past 12 months, Amazon's stock has declined by about 1%, down nearly 20% from its 52-week high of $258.60, with a current P/E ratio close to 26, slightly above the S&P 500's 22, indicating that long-term investors might consider buying below $200 for future returns.
See More
Analysis of Amazon's 10% Stock Decline
- Sales Growth: In 2025, Amazon's net sales increased by 12%, up from 11% in 2024, indicating resilience in its e-commerce business despite stock price declines, which may attract more investor interest moving forward.
- Cloud Business Performance: Amazon Web Services (AWS) is growing significantly faster than its e-commerce segment, driven by the expanding AI market that encourages more companies to invest in cloud infrastructure, thereby enhancing Amazon's profitability and market competitiveness.
- Investment Impact: Amazon plans to invest up to $200 billion in its cloud and AI infrastructure, a substantial investment that may pressure stock prices in the short term but is expected to strengthen its market position and profitability in the long run.
- Future Outlook: Analysts project Amazon's revenue and EPS to grow at CAGRs of 12% and 18% from 2025 to 2028, and if the stock trades at a 25 P/E ratio by 2028, it could rise 40% over the next two years, highlighting its long-term investment potential.
See More
Amazon Increases Investment in Spain to €33.7B for AI and Data Centers
- Investment Expansion: Amazon has increased its total investment in Spain to €33.7 billion ($39.8 billion), adding €17 billion to enhance the number of data centers and advance its artificial intelligence initiatives, demonstrating a long-term commitment to the Spanish market.
- Job Creation: This investment is expected to support approximately 29,900 full-time jobs, with 6,700 positions directly created by Amazon, directly boosting local economic growth and enhancing community employment levels.
- Infrastructure Development: The new investment will support the development of Amazon Web Services (AWS) in the Aragón region of Spain, strengthening local digital infrastructure and enabling businesses and organizations to innovate and grow in cloud computing and AI.
- Sustainability Commitment: Amazon stated that this investment focuses not only on economic benefits but also on promoting water stewardship and carbon-free energy projects, reflecting the company's strategic goals in environmental sustainability.
See More
AWS Data Centers Hit by Drone Strikes in UAE
- Data Center Damage: Amazon Web Services (AWS) reported that two of its data centers in the UAE and one facility in Bahrain were damaged by drone strikes, indicating a direct threat to operations due to the unstable security situation in the Middle East.
- Fire and Structural Damage: The strikes caused structural damage to the facilities, disrupted power delivery, and resulted in fire incidents, necessitating firefighting efforts that further delayed service restoration.
- Challenges in Service Recovery: While AWS is working to restore services in the affected areas, the nature of the physical damage suggests that recovery will be prolonged, prompting customers to take measures to mitigate the impacts of the ongoing conflict.
- Delivery Delay Warnings: Amazon also warned customers in the Middle East of potential delivery delays as Iran targeted the region with missile and drone strikes, exacerbating logistical uncertainties in the area.
See More
Amazon Data Centers Hit by Drone Strikes
- Facility Damage: Amazon Web Services (AWS) reported that two data centers in the UAE and one in Bahrain were taken offline due to drone strikes, significantly impacting service availability and stability in the region.
- Damage Assessment: The strikes caused structural damage and power disruptions, leading to fire incidents, with AWS indicating that the recovery process will be prolonged due to the complex nature of the physical damage.
- Service Impact: Several applications, including AWS's EC2 virtual servers, S3 storage service, and DynamoDB database service, experienced elevated error rates and degraded availability, affecting customers' workloads in the impacted areas.
- Customer Advisory: AWS advised customers in the Middle East to take steps to mitigate the impacts of the conflict, such as backing up data or migrating workloads to other AWS regions, in anticipation of potential instability in the future.
See More
Netflix Stock Rises as Analysts Resume Coverage and Strategic Decisions Pay Off
- Stock Price Increase: Netflix closed at $97.09 on Monday, up 0.88%, reflecting investor approval of management's decision to walk away from the Warner Bros. Discovery acquisition, thereby boosting market confidence.
- Surge in Trading Volume: The trading volume reached 78.8 million shares, approximately 53% above the three-month average, indicating heightened investor interest and engagement regarding the company's growth potential.
- Analyst Coverage Resumed: JPMorgan resumed coverage with an Overweight rating and a $120 price target, highlighting content strength and ad-tier traction, with an expectation of reaching around $11 billion in free cash flow by 2026.
- Clear Strategic Positioning: Netflix's decision positions it as a platform focused on monetization and operating leverage rather than consolidation, with investors keenly watching for ad-tier growth and margin expansion to confirm sustainable free cash flow without major acquisitions.
See More
Amazon's Stock Dip: A Buying Opportunity?
- Stock Price Decline: As of March 2, Amazon's stock has fallen 9% and briefly dipped below $200, currently hovering near this level, which may attract growth investors despite its market cap exceeding $2 trillion.
- AI Investment Concerns: Amazon plans to spend up to $200 billion on capital expenditures in the coming year, which is higher than expected and has raised investor concerns about the return on AI investments, putting pressure on the stock price.
- Overreaction in the Market: Despite the high spending pressure, Amazon's online marketplace and cloud business have significant AI application potential, suggesting that the market's downward adjustment of its valuation may be an overreaction, with the stock price now at relatively low levels.
- Long-term Investment Value: Over the past 12 months, Amazon's stock has declined by about 1%, down nearly 20% from its 52-week high of $258.60, with a current P/E ratio close to 26, slightly above the S&P 500's 22, indicating that long-term investors might consider buying below $200 for future returns.
See More
