Amazon.com (AMZN): Short-Term Shivers, Long-Term Gains?

We recently published a list of 10 Stocks on Analysts’ Radar Amid Tariff Turbulence. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other stocks on analysts’ radar amid tariff turbulence.

Dan Niles, Niles Investment Management founder, predicted in a CNBC program earlier this month that unlike previous market crashes, the latest market volatility of 2025 could see a quick resolution because it was “self-inflicted.”

“Unlike prior drawdowns that you’ve seen, like the global financial crisis, you’re not going to fix the problem in a day because you’ve accumulated tons of bad mortgages. You’re not going to fix COVID because it’s a global pandemic in a day. You’re not going to fix the tech bubble meltdown because you overinvested for 5 years back in the late 1990s. This you can literally fix overnight if everybody, you know, resettles the tariffs because this is a self-inflicted wound.”

However, this does not mean Niles is bullish on the market in the long term. He still has valuation concerns and reiterated that he entered the year with cash as his biggest holding. Niles said his top five picks do not include any of the Mag. 7 companies, and he would remain cautious on valuations:

Asked about his preferences in the current market environment, the analyst warned investors to steer clear of high valuations and big promises that lie far into the future:

“I would focus on is which companies are generating a lot of cash, which ones tend to pick up market share during recessions. Those are the types of names that you want to be in because if you’re in stuff where, well, you know 10 years from now it’s going to be a big market, you’re going to get absolutely murdered if you get into a recession,” Niles said.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks Wall Street analysts have been focusing on. With each stock, we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Investors: 339

Scott Devitt from Wedbush said in a latest program on Schwab Network that Amazon.com, Inc. (NASDAQ:AMZN) might face headwinds in the short term, but the stock is poised for growth for the long term:

It’s about duration. Really, you know, on a shorter-term basis, Amazon is not in such a secular growth stage within its business that it’s going to overcome a slowdown in consumer spending. So, should the consumer continue to slow, as it’s already begun to do in the U.S. market, that’ll contribute to a deceleration in Amazon’s core business. There’s no really stopping that. When you look at it from an intermediate to longer-term basis, Amazon’s retail business continues to gain share of total retail on a global basis, excluding China. The advertising business is growing, mid-teens toward 20%, and AWS is a hundred-billion-dollar revenue business, also growing, depending on the quarter and comps, mid-teens to 20%. Margins are rising and should grow 20% CAGR for the next five years, barring an unforeseen recession. So, the setup for the stock is very good intermediate to long-term. Short-term, who knows?

Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”

Overall, AMZN ranks 1st on our list of stocks on analysts’ radar amid tariff turbulence. While we acknowledge the potential of AMZN, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.