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Amazon Stock Gets a Downgrade. How Tariffs Are Set to Hit Its Business. - Barron's

1. Raymond James downgraded AMZN from Strong Buy to Outperform. 2. Tariffs on Chinese goods could hit AMZN's gross margins by 10%. 3. AMZN shares dropped 1.7% to $169.70 in premarket trading. 4. Alternative supply chains away from China may cost AMZN several billion dollars. 5. China-based advertisers accounted for 14% of AMZN's advertising revenue.

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FAQ

Why Bearish?

The downgrade and potential margin hit indicate weaker future performance, similar to historical tariff impacts.

How important is it?

The impact of tariffs and a downgrade directly affects AMZN’s pricing and profit outlook.

Why Short Term?

Challenges from tariffs and operational costs may impact AMZN's performance in the next quarters.

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