Cathie Wood Doubles Down on Amazon as Tariff Worries Shake Investors
Alright, let’s talk about something that’s really stirring the market right now—Amazon stock. It’s been on a bit of a rollercoaster lately, down about 30% from its peak earlier this year. And a big part of that drop is thanks to the recent tariff hike from the Trump administration, which just raised duties on Chinese imports to more than 100%. For a company like Amazon, which relies heavily on Chinese sellers in its U.S. marketplace, that’s a serious hit.
Now, you’d think this kind of uncertainty would scare off even the most seasoned investors. But not Cathie Wood. Nope—she’s doing the exact opposite. She’s been buying Amazon like it’s on sale, and honestly, she might be onto something.
Last week alone, Cathie Wood’s Ark Invest snapped up over 54,000 shares of Amazon, spending about $9.3 million. And she hasn’t stopped there—her funds were still buying as recently as April 7. That’s some serious conviction, especially when you consider Amazon’s own management just gave a less-than-stellar revenue outlook for the current quarter.
So why is Cathie so bullish?
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It all comes down to AI. Amazon’s betting big on artificial intelligence, with a massive $4 billion investment into Anthropic back in November. This move is all about staying ahead in the rapidly changing AI space, and investors like Cathie Wood see that as a long-term growth engine.
Plus, Amazon’s valuation is looking pretty attractive right now. The forward price-to-earnings ratio is sitting around 30, which is way below its historical average of over 50. In other words, the stock is cheaper than it’s been in a long time—at least by Amazon standards.
And let’s not forget their new “Buy for Me” feature. This AI-powered tool lets users shop on third-party websites without leaving the Amazon app. That kind of convenience could be a game-changer, and analysts like Nicholas Jones from JMP Securities believe it could drive significant upside. He’s got a price target of $285 on the stock, suggesting it could rise another 65% from where it is now.
Even with all the fear and uncertainty swirling around tariffs and potential economic slowdowns, Wall Street’s still standing behind Amazon. The stock has a consensus rating of “Strong Buy,” with a median price target of $267. That points to a potential 57% rally over the next year.
So, the question is—should you be following Cathie Wood’s lead?
It all depends on your outlook. If you believe in Amazon’s AI strategy and see this tariff dip as a short-term hiccup, then this might actually be a golden opportunity. One thing’s for sure: when someone with Cathie Wood’s track record keeps buying, it’s worth paying attention.
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