Is the time to buy Amazon’s share after declining 25% from its highest level?

Despite its strong position, Amazon (Amazon) has not spared the recently sweeping the market, and with the new decisions of US President Donald Trump regarding customs duties, the company is facing challenges that may directly affect its commercial activity, especially since a large percentage of goods on its platform comes from outside the United States.

In light of these developments, Amazon launched an attempt to acquire the Tek Tok application, which increases the scene complicated for investors.

Great pressure on sellers from the third party

The e -commerce is one of the most important activities of Amazon, and it relies widely on goods imported from other countries, and with the abolition of previous customs exemptions that allowed the passage of parcels of less than $ 800 without taxes, the new fees have reached 30% or $ 25 on each commodity, which threatens commercial models for sites such as Shi and Tamo, and pushing their customers towards Amazon.

But the reality is not so simple, Amazon itself includes thousands of sellers who depend on the same practices, which means that the prices of commodities on their platform will witness an increase, and this may reflect negatively on sales, and even the goods that the company imports directly will not be delivered from the impact, which makes the possible effects of the dominant and complex fees.

The economic impact of these additional costs will be distributed between suppliers, sellers, and consumers, but in varying degrees, and the final results remain unclear until the issuance of the first quarter profit reports, which are expected to be announced during April or early May.

The AWS sector is the real Amazon jewel

Although e -commerce is the most famous face of Amazon, the real power of the company lies in the web services sector (AWS), which represents 58% of operating profits during the year 2024, and AWS services are less affected by customs duties because it provides cloud computing services for customers, a field that is constantly increasingly demanding, and with companies turning into cloud computing and increasing the need to operate intelligence applications Artificial, this sector is expected to remain a long -term strength of Amazon.

But even AWS is not immune to the effects, as the company depends in its data centers on advanced processors and graphics, most of which are imported from Taiwan, which have been affected by 32%fees, and despite the presence of partial exceptions for this category, there is a possibility to impose special fees on the semiconductors in the future, which may lead to the high prices of AWS services gradually.

Is it time to buy?

Given the current pressures in the market and the fluctuations resulting from the new commercial policies, it may not now be the perfect time to buy Amazon’s share, however if the situation stabilizes during the coming weeks, the stock may represent a distinct purchase opportunity at a reduced price.

The strong demand for cloud computing services, the company’s infrastructure power, and its expansion in modern areas of growth are all factors that make Amazon a promising investment in the long run even if they face some obstacles in the short term.