Amazon (AMZN) stock jumped in heavy volume in early trading as U.S. stocks rallied on comments from President Donald Trump that indicated the trade war with China could ease.
Trump told reporters late Tuesday that China tariffs will "come down substantially but won't be zero." Trump also said he wouldn't play "hardball" with China and that he had "no intention" of firing Fed chief Jerome Powell, a concern that had weighed on stocks in recent trading days. The Wall Street Journal reported Wednesday that Trump is considering slashing some tariffs on Chinese imports by more than half.
↑X Tariff Update: Trump Exempts These Tech Goods From 125% Hike As China Trade War Rages On
The current tariff of 145% on Chinese goods has dragged on Amazon's stock since Trump announced the plan earlier this month.
Raymond James analysts downgraded Amazon from a "strong buy" recommendation this week, noting that about 30% of Amazon gross merchandise value is "China-linked." Chinese sellers also account for about 15% of advertising purchases on Amazon's website, according to the note. Several other firms have lowered their price targets for Amazon stock in recent weeks, citing the tariffs and general economic uncertainty. There are also concerns that an economic slowdown would slow growth for Amazon's profit-driving cloud computing business.
Chief Executive Andy Jassy told CNBC last week that he expects sellers would pass on the cost of tariffs to Amazon customers.
Amazon stock is up 6.8% at 185.03 in recent action on the stock market today. Each of the Magnificent Seven tech stocks were showing solid gains Wednesday morning while the S&P 500 was ahead 3% in recent action.
Amazon Stock Retakes 21-Day Moving Average
With Wednesday's early gains, Amazon stock is trading above its 21-day moving average. The company's shares have not closed a trading day above that short-term trendline since March 27, according to MarketSurge charts by Investor's Business Daily.
Shares remain well below Amazon's longer-term 50-day and 200-day trendlines, however.
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 31% from a record high of 242.52 reached Feb. 4.
Amazon will report its first quarter earnings on May 1.
Amazon Stock News And Analysis
Amazon Stock Downgraded From Strong Buy Call On Tariff RisksWall Street might still be underestimating the risk tariffs pose to Amazon.com's earnings, even though the tech giant's stock has already dropped 21% year-to-date, an analyst said Monday. Raymond James analyst Josh... Read More
Analysts Cut Amazon Price Targets With First-Quarter Report Due SoonWhile 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... Read More
Amazon Stock Breaks Nine-Week Skid As Wall Street Debates Tariff HitAmazon stock finished this week higher than it started — breaking its longest weekly losing streak since 2008. Still, there is much uncertainty for shares of the tech giant as Wall Street... Read More
View More Amazon Stock News And Analysis
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