Amazon Stock Target Price Cut by Oppenheimer Amid Tariff Concerns
In a research note released on Sunday, Oppenheimer analysts cut their target price for Amazon (AMZN) shares by 15%, citing concerns that tariffs will eat into the profits of the company’s e-commerce arm. According to Investopedia, Oppenheimer revised its target price from $260 to $220, which is 9% below the average estimate among analysts who track Amazon and are polled by Visible Alpha.
The downgrade comes as Amazon is set to release its first-quarter earnings on Thursday. Despite the cut, Oppenheimer analysts issued an “outperform” rating of Amazon stock, indicating that they still expect the company to perform well in the long term. As Investopedia reports, Oppenheimer analysts believe that paying tariffs will likely result in lower profit margins on e-commerce sales as Amazon protects its market share by keeping prices competitive.
The analysts expect investors to remain satisfied with mid- to high-teens growth at AWS, Amazon’s cloud computing platform, “even if margins contract meaningfully” on the e-commerce side of the company, the note said. This sentiment is echoed by other analysts, who have recently revised their outlook for Amazon, citing tariffs’ potential to weigh on e-commerce sales and advertising revenue.
Amazon shares have fallen nearly 15% over the course of 2025 amid a broad market sell-off spurred by tariffs. At close on Monday, the stock was off less than 1% at $187.70. Oppenheimer’s target is 16% above where Amazon shares closed Friday. The company’s stock remains about 4% above prices a year ago.
As Investopedia notes, analysts have curbed their estimates for Amazon in recent weeks, citing tariffs’ potential to weigh on e-commerce sales and advertising revenue. The company is scheduled to release its first-quarter results after the bell on Thursday. According to consensus estimates compiled by Visible Alpha, analysts expect the company to report about $155 billion in revenue, up 8% year-over-year. They anticipate $14.7 billion in profit, a 41% jump from the first quarter in 2024.
The tariff concerns are not unique to Amazon, as many companies are grappling with the impact of tariffs on their businesses. However, as Investopedia reports, Oppenheimer analysts believe that Amazon’s diversified business model, including its cloud computing platform AWS, will help the company navigate these challenges. As the company prepares to release its first-quarter earnings, investors will be closely watching to see how Amazon is managing the impact of tariffs on its business.
According to Investopedia, Oppenheimer’s revised target price reflects the firm’s cautious outlook on Amazon’s e-commerce business in the near term. However, the firm’s analysts remain optimistic about the company’s long-term prospects, citing its strong brand and diversified business model. As the company continues to navigate the challenges posed by tariffs, investors will be watching to see how Amazon’s strategy evolves in response to these changing market conditions.
This article is based on reporting from Investopedia, which can be found here: https://www.investopedia.com/oppenheimer-cuts-target-price-for-amazon-stock-15-ahead-of-earnings-release-11723549.
