Market Turmoil: Amazon Faces Setback Amid New Tariffs
On Thursday, the S&P 500 (SNPINDEX: ^GSPC) plummeted nearly 5% as President Trump’s tariffs impacted the stock market significantly. This development particularly affected Amazon (NASDAQ: AMZN), a leading importer, which experienced a staggering 9% drop in its share price. As a result, Amazon has erased gains of over 30% accumulated through 2024, returning its stock value to levels seen a year ago. The company’s decline began in February and accelerated with the increasing tariff threat becoming a reality.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
A Historical Perspective on Amazon’s Price Dips
Price fluctuations are not new for Amazon. Historical data reveals several significant drops, including a dramatic 22% downturn during the onset of COVID-19 lockdowns. Other notable declines occurred after disappointing earnings reports: a loss of 8.8% on Aug. 2, 2022, and an 8.4% dip on Feb. 3, 2023. An even steeper decline of 14.1% happened on April 29, 2022, due to another earnings miss.
An extensive chart from early 2008 to April 3, 2025 outlines these price drops amidst broader market trends. The S&P 500’s total return is included for context:
AMZN Total Return Level data by YCharts
Looking back further, the infamous subprime mortgage crisis in 2008 saw Amazon’s stock drop by 36.3% from Sept. 16 to Oct. 16, a period when the S&P 500 fell 23.2%. However, while the market struggled to recover, Amazon rebounded, doubling its value over the three years starting in 2008.
AMZN Total Return Level data by YCharts
Long-Term Perspective: Patience Rewards Investors
Amazon has consistently demonstrated resilience in the face of adversity. Historically, long-term holders have been rewarded. For instance, if an investor had placed $10,000 in Amazon on Jan. 1, 2007, that investment would now be worth approximately $388,000. Timing the market is notoriously difficult, but even subpar investments during downturns have yielded substantial returns over time.
While short-term price fluctuations may cause concern, Amazon’s innovative approach and business model are likely to provide stability in the long run. The impact of today’s tariffs will fade, becoming just another blip on the chart.
Why This Could Be a Buying Opportunity
Market conditions can create opportunities, especially when stocks are trading at lower prices. While it may not represent the lowest point for Amazon, taking advantage of current prices makes sense for many investors. A mixed metaphor suggests that time in the market ultimately benefits Amazon shareholders. Personally, I am considering adding more shares to my portfolio while they are offered at a discount.
Should You Invest $1,000 in Amazon Now?
Before making purchasing decisions regarding Amazon stocks, be informed:
The Motley Fool Stock Advisor team has identified their 10 best stocks for investment, which does not include Amazon. The stocks on this list have the potential for remarkable returns in the coming years.
Consider that if you had invested $1,000 in Nvidia when it made the list on April 15, 2005, that investment would now be worth $676,774!
Stock Advisor provides an investor-friendly approach with market strategy guidance, updates, and new stock recommendations. This service has produced returns that have more than quadrupled those of the S&P 500 since 2002.* Don’t miss out; discover the latest top stocks when you join Stock Advisor.
*Stock Advisor returns as of April 1, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, serves on The Motley Fool’s board of directors. Anders Bylund holds positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool adheres to a disclosure policy.
The views stated in this article reflect the author’s opinions and do not necessarily represent those of Nasdaq, Inc.
