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The tech giant has a $1.9 trillion market cap, but e-commerce isnt its only tailwind.
As of April 10, 2025, Amazon stock is down about 17% for the year.
Now may be a good time to assess the pros and cons of buying the dip in Amazon stock.
Hereswhat experts had to say about buying Amazon stock.
Amazon is heavily dependent on goods sold by third-party merchants in China.
Higher prices could affect Amazons sales significantly, especially if consumers cut back on spending, he said.
Amazon has international operations in 130 locations.
Tariffs could cause significant upheaval in its services business.
This combination may add additional volatility to the stock price in the near term.
Some sellers may no longer be able to sell their products on Amazon due to losing their profit margins.
President Trump seems committed to maintaining high tariffs on China.
While the 90-day pause is a good development for stocks, the elevated tariffs on China remain a concern.
Its AWS business is the bulk of its operating margin.
Those contracts are generally longer term and have a very high margin.
Companies will struggle to quickly pull away from cloud commitments, and this anchors the company, he said.
Cloud computing has beena key growth driver for Amazon.
Growth in this segment could compensate for declining e-commerce sales.
However, Newman expressed caution about Amazons e-commerce and ad segments.
On one hand, the stock could experience short-term volatility due to the tariffs.
However, it ultimately remains to be seen what will happen with tariffs and Amazons stock.
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