Shares of Facebook parent Meta Platforms and Amazon wavered in trading Tuesday. Wall Street is still sizing up the tariff risk for each company, however, with analysts at JPMorgan cutting their price targets for both stocks Tuesday.
JPMorgan analyst Doug Anmuth cut his price target for Amazon stock to 220, from 270. Meta stock was lowered to 610 from 725. JPMorgan also lowered growth estimates for both companies. The cuts came within a broader set of adjustments across internet stocks from JPMorgan in response to concerns about the overall economy. Economists with the investment bank forecast a 60% chance of a recession this year, the client said.
"There is no macro immunity in the internet space, only degrees of resilience," Anmuth wrote. "While our checks and data have weakened somewhat toward the end of 1Q and into early April, our new estimates anticipate further deterioration and likely factor in a slight recession scenario."
While he lowered targets for both companies, Anmuth said he prefers Meta and Amazon among mega-cap tech stocks.
Amazon Stock: High Tariff Exposure
JPMorgan's preference for Amazon among large internet stocks comes despite the company having the "most direct exposure to tariffs and a macro slowdown," Anmuth wrote.
Somewhere between 30% and 40% of products sold on Amazon likely come from China, by JPMorgan's estimates.
"Tariff implementation of 54% would be quite significant — we believe totaling roughly $10 billion to the U.S. first-party business alone," Anmuth wrote.
That could force Amazon to either pass-on costs to customers, reroute supply chains or press suppliers to absorb costs, Anmuth wrote. "Despite Amazon's direct tariff and macro exposure, we note that following previous periods of extreme dislocation Amazon has come out the other side with even greater share gains — i.e. many other retailers will get hurt more," the client note added.
Amazon stock slipped a fraction to 174.98 in recent action on the stock market today. Shares have slid nearly 8% this month after falling 10% in March. Amazon stock has been trading below its 200-day moving average since March 27.
The current slump for Amazon stock began with its fourth-quarter results in early February, which beat earnings estimates but included a lower-than-expected sales forecast for Q1. Shares have tumbled 28% from a record high of 242.52 reached Feb. 4 and are down 20% year-to-date.
Meta Stock: Risks To Advertising Market
Meanwhile, Meta has risks from tariff in that China-based e-commerce retailers are a big source of ad spending for Facebook and Instagram. JPMorgan estimates China-based advertisers accounted for 11% of Meta's 2024 revenue.
There is also risk that a recession or tariffs in general will cause advertisers more broadly to pull back.
"Meta will be negatively impacted, but we believe it also has a number of company-specific drivers in AI-driven ads improvements, video unification, WhatsApp ads, Llama 4 and the next version of Meta AI," Anmuth wrote.
Meta stock gained a fraction to 519.36 in recent action. Shares gained 2% Monday, breaking a slide that saw Meta fall nearly 15% over three trading days.
Overall, Meta stock is down 11% in 2025. That's despite a record 20-day winning streak for Meta from late January until Feb. 14. Shares peaked with a Valentine's Day high of 740.91. Since then, Meta has fallen 30%.
