The S&P 500 has rebounded swiftly from April's tariff-induced bear market, with Amazon stock showing resilience and consolidation above April lows. Amazon Web Services (AWS) remains a key profitability driver, helping to mitigate the headwinds linked to the trade turmoil. AMZN continues to trade at an attractive level, closer to the lows it fell to in late 2023.
Global equity markets have been exceptionally volatile in 2025, rattled by increasing trade tensions between the U.S. and China, rising global conflicts, and growing concerns about impending recessions in major economies.
Amazon's 1Q25 results show improved operating margins Y/Y, with North America at 6.3% and international at 3%. Valuation concerns include increased capex and slowing non-AWS growth, but potential operating margins of 8% for non-AWS segments suggest strong future earnings. With a market cap below the valuation range, Amazon stock is a buy for long-term investors holding for at least three years.
Amazon will start selling prescriptions for pets. According to a Thursday (May 8) blog post from Amazon, the company said it is partnering with pet pharmacy Vetsource to provide prescription pet medications, adding hundreds of prescription medications to its platform.
Amazon is adding "hundreds of commonly prescribed pet medications" to its online pharmacy in the U.S. Prescriptions are dispensed and delivered by Vetsource, an online pet pharmacy, but are ordered through Amazon's storefront.
Britain's digital services tax, imposed on U.S. companies like Amazon , Google and Meta , will not be changed under the terms of the trade deal agreed between the two countries on Thursday, the British government said.
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