Shares in Amazon slid Tuesday after CEO Andy Jassy warned that U.S. tariffs are beginning to raise prices on the company’s site. Jassy made the comments at the World Economic Forum in Davos while speaking to CNBC.
“(We’re starting) to see some of the tariffs creep into some prices. Some sellers are deciding that they’re passing on those higher costs to consumers, some are deciding that they’ll absorb it to drive demand, and some are doing something in between. So you’re starting to see more of that impact,” Jassy said. He added that shoppers remain active but are slightly more hesitant on higher-priced discretionary purchases.
Since April 2025, AMZN has shown a gradual uptick despite tariff concerns. The company has said it earlier saw little consumer impact and has broadened product categories and sped delivery to support demand.
The stock fell 4.8% over the past week. Analysts expect several catalysts to support shares into 2026, including strong AI interest and cloud growth.
Amazon is investing heavily in AI, including a reported $10 billion stake in OpenAI and a planned $35 billion buildout for an AI hyperscale data center in India, and it aims to create one million jobs by 2030. Analysts remain mixed on valuation, with price targets from $244 to $340 versus a current market price near $246.
