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Key Takeaways
- Oppenheimer cut its target price for Amazon stock by 15%—to $220 from $260—in a research note Sunday.
- Analysts believe that Amazon will have lower profit margins for ecommerce sales due to tariffs, as it works to protect its share of the market.
- Other analysts have recently revised their outlooks for Amazon. The company is scheduled to release its first quarter earnings on Thursday.
Oppenheimer lowered its price target of Amazon (AMZN), anticipating that tariffs would reduce the profits made by the company’s online arm.
Oppenheimer revised its relatively bullish target price of $260 down to $220—9% below the average estimate among analysts who track Amazon and are polled by Visible Alpha. Oppenheimer analysts gave Amazon a “outperform’ rating in a Sunday research note, just days before it is scheduled to report its first-quarter results on Thursday.
Analysts say that paying tariffs could result in lower profits on ecommerce sales because Amazon will protect its market share through keeping prices competitive. Analysts expect investors to be satisfied with growth in the mid-teens to high teens at AWS, Amazon’s cloud computing platform. “Even if margins contract significantly” on the ecommerce side of the business, the note stated.
Amazon shares are falling along with the market over tariffs
Oppenheimer’s goal is 16% higher than where Amazon shares ended Friday. Shares of the company have fallen by nearly 15% since 2025, amid a general market sell-off triggered by tariffs. Amazon stock is still about 4% higher than it was a year ago. The stock closed Monday at $187.70, a decrease of less than 1%.
Analysts have lowered their estimates for Amazon over the past few weeks due to the potential impact of tariffs on ecommerce sales and advertising revenues.
The company will release its first-quarter earnings after the bell on Friday. Visible Alpha’s consensus estimates show that analysts expect the company to generate revenue of $155 billion, an 8% increase over last year. Visible Alpha estimates a profit of $14.7 billion, which is a 41% increase from the first quarter of 2024.
