While analysts remain bullish overall on Amazon stock, several Wall Street firms have cut their price targets for the tech giant's shares ahead of its first quarter earnings report.
Concerns about the impact of President Donald Trump's tariff plan have weighed on Amazon shares in recent weeks. Amazon stock had sold off on a Q4 earnings report that included a lower-than-expected sales forecast for its March-ended first quarter. There are also concerns about the $100 billion the company plans to invest in capex this year, focused mostly on AI infrastructure for its Amazon Web Services cloud business.
On the stock market today, Amazon fell 2.9% to close at 174.33. Shares for the Seattle-based cloud-computing and e-commerce firm have lost 20.5% this year and are down 5% from 12 months ago.
Still, about 93% of the 75 Wall Street analysts following the stock rate it a buy, according to FactSet. But the average one-year price target analysts have calculated for Amazon stock has declined to 254.40, down 5% from February.
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Amazon's Tariff Question Mark
Deutsche Bank analyst Lee Horowitz cut his target price for Amazon to 206 from 287 in a client note Monday.
"Focusing primarily on the U.S. e-commerce business, slowing U.S. retail sales (1% year-over-year) and e-commerce (5%) sales growth expectations, incremental tariff costs on goods out of China, Vietnam, and the rest of the world, and slowing Amazon advertising revenue growth, all conspire to potentially bring 2025 EPS estimates down by roughly 15% based upon a balanced case scenario with China tariffs reverting back to 54% and Vietnam tariffs ending up at 20%," Horowitz wrote.
Citizens JMP analyst Nicholas Jones, meanwhile, cut his Amazon price target to 240, from 285, on Monday. But he said Amazon is likely best positioned among e-commerce stocks he follows to weather a tough economy.
"Its exposure to consumer staples, and focus on pricing and convenience, should help mitigate discretionary spending headwinds on its e-commerce business," Jones wrote. "Additionally, we believe the size and strength of AWS and its advertising business within their respective verticals will likely lead to continued share gains, regardless of the economic environment."
Meanwhile, Wedbush analyst Scott Devitt cut price targets across his coverage of internet stocks Tuesday. That included dropping his target for Amazon to 225 from 280.
Devitt said the cuts reflect "limited visibility into current economic conditions" and "potential implications of a weaker demand environment."
Analysts with BMO Capital and Cantor Fitzgerald also lowered Amazon price targets in client notes Wednesday, according to news reports.
Amazon Stock: Q1 Results Due Soon
Meanwhile, Amazon's first quarter results are likely coming soon. The company hasn't set an official date but is expected to publish results later this month or in early May.
Evercore ISI analyst Mark Mahaney has held to a 270 price target for Amazon stock that predates the Trump tariff announcements.
But he wrote Monday that he is cautious overall in response to an "internet stock bear market."
He sees Amazon meeting expectations for Q1 results and second quarter guidance. But, he added, "We are becoming incrementally cautious, given clearly softening consumer sentiment and uncertainty around tariff impacts."
Amazon Stock Below 200-Day
Amazon stock gained 8% last week, breaking a streak of nine consecutive down weeks. That was Amazon longest losing streak since 2008. Shares have tumbled 27% from a record high of 242.52 reached Feb. 4.
Further, Amazon fell below its 200-day moving average late last month and remains well below the long-term trendline.
