Shares in Amazon (AMZN) stock are sliding on Tuesday after CEO Andy Jassy warned that US tariffs are starting to hike prices on its site. Speaking to CNBC on Tuesday morning, Jassy revealed that Amazon.com is starting to see an uptick in product prices on its e-commerce platform as sellers respond to cost pressures stemming from Trump’s tariffs. Jassy spoke to CNBC at the World Economic Forum in Davos, Switzerland, detailing how dwindling supply is contributing to the price hikes as tariffs kick in.
“(We’re starting) to see some of the tariffs creep into some prices. Some sellers are deciding that they’re passing on those higher costs to consumers, some are deciding that they’ll absorb it to drive demand, and some are doing something in between. So you’re starting to see more of that impact,” Jassy said. He went on to add that despite the slowly rising prices, consumers are still active on the e-commerce website, but shoppers are a “little bit more hesitant” on higher-priced discretionary purchases. “Amazon’s consumers overall have fared well. But we’ll have to see what happens in 2026.”
Since April 2025, Amazon (AMZN) stock has seen a slow rise upwards, despite tariffs threatening that growth. The company has stated over the past year that it has seen very little impact on consumer behavior and product prices from tariffs. In fact, Amazon has doubled down on expanding product categories and speeding up delivery timelines to shield demand amid the growing threat.
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Amazon’s stock has slipped in the past week, falling 4.8%. However, several catalysts are expected to keep AMZN shares on the rise in 2026. For starters, the AI bubble doesn’t appear to be ready to burst anytime soon. Its AI prospects are booming, and AWS cloud computing has proven successful. Indeed, Amazon stock is among the most talked-about equities as the firm is investing billions in the AI sector. The tech giant announced to invest $10 billion in OpenAI’s ChatGPT and also $35 billion to build an AI hyperscale data center in India. They plan to create 1 million jobs by 2030 and are aggressive in advancing the next-generation technology.
Furthermore, despite recent stock performance, analysts are mixed on Amazon’s valuation, with some seeing it as undervalued and others viewing it as fully valued. Most analysts, including Wedbush and B of A Securities, maintain a Buy or equivalent rating. Current analyst price targets range from $244 to $340, suggesting potential upside from the current market price of $246.29.
