Amazon Stock Slips After Price Target Cut on China Tariff Warnings
Amazon (NASDAQ:AMZN) shares dropped nearly 5% Monday after Raymond James dialed back its optimism on the stock. The firm downgraded Amazon to “Outperform” from “Strong Buy” and cut its price target by 29%, bringing it down to $195 from $275.
Analyst Josh Beck explained the move, pointing to growing risks tied to the U.S.China tariff fight. While he still sees long-term potential in Amazon’s AI and broader investments, short-term earnings pressure and slow progress on monetization made it harder to stick with the previous bullish call.
One of the big worries? About 30% of Amazon’s merchandise think electronics, clothing, and toys comes from China. With new tariffs hitting as high as 145%, Beck estimates that gross margins could…
