Trumps tarrif impact on Amazon Stock: Dont Panic, Buy more

Disclaimer:
1. I own significant AMZ stocks in my portfolio.
2, While I work for Amazon, I do not posses or have access to any Amazon propitiate information or data
3. All information in this article was got from SEC reports and using Claude AI.

Over the past week, Amazon’s stock (AMZ) has plummeted amid President Trump’s newly imposed tariffs, sending ripples of concern through my colleagues and friends at the company. Yet, I contend this sell-off is a fleeting overreaction, fueled by market sentiment rather than a sober assessment of Amazon’s fundamentals.
 

 
 
Admittedly, tariffs will likely drive up the prices of goods sold on Amazon’s retail platform. Critics argue this could erode demand, but I see a different outcome: higher prices may actually bolster Amazon’s revenues. Even if consumers shift toward cheaper items or buy less, total spending could rise—a dynamic supported by the company’s historical resilience.
 
Consider the data from Q1-2021 to Q4-2024: the Consumer Price Index (CPI) climbed from 269.2 to 318.8, a 49.6-point rise, reflecting the growing burden on U.S. consumers. Over the same period, the U.S. retail index grew by a modest 26.8 points, while Amazon’s U.S. retail index soared by 88.2 points—outpacing both CPI and broader retail trends by a wide margin. 
 
 
 

 Claude Src Link and interactive graph 
 
 
 
Historically, Amazon’s retail growth has exceeded inflation and U.S. retail benchmarks by 15-25%, even during the high-inflation, high-demand peak of COVID. This suggests a robust capacity to thrive amid rising costs. 

 Claude Src link
 
 
Looking ahead, U.S. consumer spending is unlikely to falter. With interest rates trending downward—and potential tax cuts on the horizon—disposable income may increase. Spending patterns might shift, favoring lower-cost goods or fewer purchases, but the total dollars spent should grow. Amazon’s razor-thin margins and unmatched operational efficiencies position it to capitalize on this trend, just as it has before.
 
The tariff-induced panic in AMZ stock strikes me as unwarranted. Nothing in Amazon’s core strengths—scale, adaptability, and market dominance—has changed. If anything, this dip is a chance for savvy investors. My call? A resounding “Strong buy.”

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