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Here's Why You Should Ignore the Tariff Noise and Buy the Dip in Amazon Stock


Published on 2025-03-28 11:21:09 - Barchart
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  • After the recent correction, Amazon's valuation multiples have contracted and it now trades at a forward price-earnings (P/E) multiple of 31.8x. Now, there are two ways of looking at these multiples. On the face of it, Amazon's P/E is the second highest among Magnificent 7 peers, and only Tesla (TSLA) trades at a higher multiple.

The article from MSN Money discusses why investors should consider buying Amazon stock despite the noise around tariffs. It highlights that while tariffs on Chinese imports could potentially increase costs for Amazon, the company's diversified business model, including its robust e-commerce platform, AWS (Amazon Web Services), and advertising revenue, provides multiple revenue streams that can cushion the impact. The piece argues that Amazon's ability to pass on costs, its significant market power, and its continuous innovation in logistics and technology make it resilient to such economic pressures. Furthermore, the article suggests that any dip in Amazon's stock price due to tariff concerns could be an overreaction, presenting a buying opportunity for long-term investors who believe in Amazon's growth potential and its capacity to adapt to global trade challenges.

Read the Full Barchart Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/heres-why-you-should-ignore-the-tariff-noise-and-buy-the-dip-in-amazon-stock/ar-AA1BQMv6 ]