Amazon (AMZN, Financial) saw its stock price drop by 4% amid a generally weak market. The stock has fallen 30% from its 52-week high in February. With just ten days until Amazon releases its first-quarter earnings, Wall Street analysts are divided in their assessments. Raymond James downgraded Amazon from "strong buy" to "outperform," citing underestimated EBIT pressures for 2025-2026. Analyst Josh Beck highlighted macroeconomic uncertainties, tariff risks, and increasing investment intensity as challenges for the company.
Despite these concerns, Bank of America believes Amazon's valuation is lower compared to Walmart (WMT), noting Amazon's P/E ratio of 23 versus Walmart's 32. Analyst Justin Post emphasized Amazon's potential in AI and retail margins, suggesting that tariffs might actually help Amazon gain market share due to its scale.
Morgan Stanley maintains Amazon as a "top pick" with an "overweight" rating but warns of increasing macroeconomic uncertainties. The firm recently lowered its 2026 EPS estimate to $7 and set a target price of $245.
On the Seeking Alpha platform, opinions are similarly mixed, with some analysts optimistic about Amazon's prospects and others recommending a "sell" or "neutral" stance. Amazon is set to release its earnings on May 1, with expected revenue of $155.1 billion and EPS of $1.36. Options trading suggests a potential 9% stock price movement post-earnings.
