Trump's Policies Create Market Uncertainty Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 28 2026
0mins
Should l Buy AMZN?
Source: Fool
- Tariff Uncertainty: Trump's trade policies have led to an 8% drop in the dollar index last year, eroding U.S. stock market gains relative to other currencies, which analysts believe will impact companies' future production plans and investment decisions.
- Fiscal Deficit Pressure: The U.S. may need to refund $175 billion in tariff revenue, potentially pushing the already ballooning deficit to $1.85 trillion this year; while the deficit doesn't directly affect stocks, it could lead to rising interest rates, increasing borrowing costs for companies and compressing profit margins.
- AI Spending Risks: Although the top four hyperscalers are expected to invest $700 billion in AI data center equipment, such capital expenditures may incur long-term depreciation expenses that could negatively impact profitability, especially as the market begins to punish large spenders.
- Investor Strategy: During market volatility, maintaining a long-term investment perspective is the safest strategy, as U.S. markets have historically rebounded from severe downturns, prompting investors to focus on profitable companies with reasonable valuations to mitigate risks.
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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: 210.570
Low
175.00
Averages
280.01
High
325.00
Current: 210.570
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.
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- Diversified Revenue Support: Although Amazon's trailing-12-month free cash flow fell to $11.2 billion, its operating cash flow increased by 20% year-over-year to $139.5 billion, demonstrating strong performance in high-margin segments like advertising and subscriptions, enabling self-funding for AI infrastructure investments.
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See More
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- Emerging Investment Opportunities: Despite the market weakness, this situation creates attractive buying opportunities for investors, particularly value investors who may seek undervalued stocks for long-term gains in a sluggish market environment.
- Market Sentiment Analysis: Current market sentiment reflects concerns over economic recovery, prompting investors to potentially reassess their portfolios in the coming weeks to navigate potential market volatility and uncertainty.
- Need for Strategic Adjustments: In this market environment, investors must consider adjusting their investment strategies to quickly capitalize on opportunities when the stock market rebounds, ensuring maximum returns during future recoveries.
See More
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- AI and Trillionaires: A recent report suggests that AI could create the world's first trillionaire, indicating significant future potential and investment value in the tech industry, especially for companies linked to Nvidia and Intel.
- Investment Recommendations: The Motley Fool's analyst team has identified 10 top stocks for investors, notably excluding Microsoft, which reflects a shift in market preference towards other tech stocks that could impact Microsoft's investment appeal.
- Historical Returns Comparison: Stock Advisor boasts an average return of 926%, significantly outperforming the S&P 500's 185%, indicating that its recommended stocks have substantial long-term excess return potential.
See More
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- Significant Military Losses: Iran has successfully shot down two U.S. warplanes, including an F-15E and an A-10, marking the first air combat losses after over 13,000 sorties; while the U.S. maintains air superiority, this incident highlights an intensifying asymmetric conflict dynamic.
- Strategic Shift: The Islamic Revolutionary Guard Corps (IRGC) has demonstrated resilience despite five weeks of bombardment, shifting focus to disrupting critical radar installations and Gulf energy infrastructure, utilizing a 'weapon of disruption' that keeps global energy prices volatile and directly impacts U.S. domestic inflation.
- Diplomatic Stalemate: Iran's refusal to participate in the scheduled peace summit in Islamabad, citing unacceptable ceasefire demands from the White House, indicates a breakdown in diplomatic efforts that could prolong the conflict, prompting investors to brace for delays in reopening vital trade routes until the second half of 2026.
- Rising Commercial Security Risks: With Iran launching daily drone and missile strikes against regional targets, multinational corporations are reassessing their presence in the Gulf, as markets are pricing in a higher 'geopolitical risk premium' for firms exposed to Middle Eastern logistics and energy production, suggesting an increasingly obscured path to a rapid resolution of the conflict.
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