For long-time investors, Amazon stock has been nothing short of a home run. Amazon has returned an average of 26.17% annually over the past 15 years, but in 2025, the Amazonian money-maker has stumbled a bit in terms of growth.
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Here are the current market performance numbers for AMZN as of Aug. 12, 2025:
- Stock price: $221.47
- Market cap: $2.36 trillion
- P/E ratio: 33.80
- 52-week high: $242.52
- 52-week low: $161.43
As you can see, there has been some turbulence over the last 52 weeks for the stock, and it has some investors concerned. Read on to find out why. You can also check out four stocks that rich investors never sell by going here.
Issues at Amazon
While it seems like there is always something to worry about in the world of investing, when it comes to Amazon stock, there are two main issues that have investors concerned in 2025. Ultimately, both are related to the economy as a whole.
The first problem for Amazon is the overall economy. GDP actually turned negative in Q1 2025, and some companies have already begun laying off workers, or at least freezing hiring. The Trump administration’s tariff campaign added additional uncertainty to the mix, with the parameters changing frequently since they were first announced. Regardless of the outcome, it appears likely that the costs will increase for companies and customers alike. As the largest online retailer in the world has huge exposure to the state of the overall economy, investors fear that earnings will fall at Amazon.
The second concern is that AI spending will slow. AI stocks like Nvidia took a big hit earlier in 2025 as investors grew concerned that companies can’t continue to spend as much on AI as they did in 2024. As Amazon’s Web Services division is an important part of the AI ecosystem — not to mention an important growth driver for the company — any slowdown could spell double trouble for Amazon, which is already susceptible to a consumer slowdown.
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Long-Term Outlook
There’s no denying there’s some near-term uncertainty regarding Amazon. But the current selloff could actually prove to be a great opportunity for long-term buyers to establish a position.
For starters, many in the analyst community think that worries about AI losing steam are unfounded. In fact, in April, Morgan Stanley went so far as to call investors’ fear of an AI slowdown “laughable.” The data seems to back this up. According to blockchain venture capital firm CV VC, AI funding is actually still accelerating. In Q1 2025, 53% of global funding went to AI alone, to the tune of $59.6 billion. This made AI the dominant sector for venture capitalists in 2025’s first quarter, hardly a sign of a slowdown.
Regarding any slowdown in the general economy, yes, this would certainly affect Amazon’s earnings. However, buying shares when the stock is down could pay dividends when the economy recovers, making it an attractive play for long-term investors. Of the 70 analysts covering the stock in May 2025, 66 have a “buy” or “strong buy” rating on the stock, with an average 12-month price target of $238.79. That suggests a 19% pop in Amazon shares over the coming year.
Final Take To GO: Is Amazon Stock Prime for a Fall?
One of the reasons the stock market fell into a bear market this year was the uncertainty caused by the Trump’s implementation of tariffs and other surrounding political and economic factors. Unfortunately, much of that uncertainty still remains. This could keep a lid on stock market gains until it’s clear what the final tariff policy will be — and what economic impact it will have.
If the economy falls into a recession, consumers will cut back on their spending and businesses will slow their AI funding. But if the economy remains resilient, neither of those two scenarios should hold back Amazon’s stock. It’s impossible to make more than an educated guess at this point, so if you’re considering buying Amazon, make sure it’s in line with your own personal investment objectives and risk tolerance.
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This article originally appeared on GOBankingRates.com: 2 Reasons Investors Are Worried About Amazon Stock — Should They Be?
