A truly volatile period for U.S. financial markets is still unfolding, leaving investors with more questions than answers.
Last week, U.S. President Donald Trump sent many stocks into free fall when he announced plans to implement even more tariffs. Earlier this week, as they continued plummeting, he announced a 90-day pause on most reciprocal tariffs, causing many stocks to reverse course and start surging.
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This momentum led to speculation that financial markets were through the worst of the tariff turmoil. However, many leading tech companies are back in the red today, as uncertainty continues to cast dark shadows over the economy, particularly regarding U.S.-China trade relations.
Wall Street analysts have clarified that they are concerned about how these trends will impact leading tech stocks. In the case of Amazon (AMZN) , they are scaling back expectations for more difficult days ahead.
Andy Jassy, CEO of Amazon is facing a difficult landscape as Wall Street analysts scale back their Amazon price targets.
Photographer: David Paul Morris/Bloomberg via Getty Images
Multiple analysts have blunt takes on Amazon stock
Over the past month, Amazon has been highly volatile, putting it on the same ground as most of its big tech peers. Despite some momentum earlier this week, it remains in the red for the month and is currently trending downward as negative tariff speculation rises.
Part of this downward pressure can likely be attributed to the fact that two Wall Street banks have reduced their price targets on Amazon.Â
Analysts at Truist Financial and Piper Sandler have reworked their assessments of the tech conglomerate, though both maintain positive ratings.
Related: Analyst resets Alphabet stock price target after sell-off
While Truist still rates AMZN as a buy, it has lowered its price target by $35, decreasing it from $265 to $230. In addition, it scaled back its FY26 revenue view for the company from $697.1 billion to $690.8 billion and its overall FY26 view from $761.7 billion to $746.9 billion.
According to Truistâs analysts, these more modest forecasts are primarily due to concerns regarding tariffs, specifically those against China, which Trump doesnât seem to be backing down on. Amazon has already canceled some product orders from China, which could be seen as an indicator of similar things to come.
âThe price target adjustment reflects the analystâs assessment of the immediate economic pressures facing the company,â Investing reports. âThe increased tariffs on Chinese goods are likely to have a ripple effect on Amazonâs pricing strategies and consumer demand, which could influence the companyâs financial performance in the near term.â
Truist isnât the only financial institution concerned about Amazonâs future. Piper Sandler analyst Thomas Champion recently lowered his price target from $265 to $215. However, he maintains an Overweight rating for the stock and predicts 17% year-over-year (YOY) growth for Amazon Web Services (AWS).
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Despite the timing, this price target reduction doesnât seem prompted by the tariffs. âThe revised price target comes after adjustments in the estimated growth for Amazonâs advertising revenue by approximately 1% and similar reductions for the online stores and third-party (3P) services,â Investing notes.
Is the trade war going to impact Amazon?
Despite these lowered price targets, Wall Street sentiment towards Amazon still remains extremely high. Out of 47 analysts, 46 maintain buy ratings, with only one calling it a hold. That puts it ahead of many other prominent tech sector leaders that analysts arenât so bullish on.
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That said, the trade war has definitely led to complications for most tech companies. The tariffs in China could be particularly difficult for Amazon, as the company relies heavily on Chinese sellers. While it survived the trade war in 2018, experts see the stakes as being higher now. Per GuruFocus:
âBank of America analysts noted in a research note Wednesday that the company’s sales brushed off the 2018 tariff rounds, but the broader 2025 measures present a new ballgame for cost structures and logistics. The firm lowered its price target on Amazon from $257 to $225.â
With things changing quickly, it is unclear if Amazon will continue scaling back its relationship with Chinese vendors or will simply raise prices. However, despite some scaled-back price targets, it is clear that Wall Street isnât overly concerned with Amazonâs growth prospects.
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