Amazon.com (AMZN) is advancing 2.5% after Bank of America wrote today that the conglomerate’s e-commerce business would be relatively well-positioned to withstand President Donald Trump’s tariffs.
Additionally, AMZN yesterday announced an expansion of its previous deal with GE Vernova (GEV).
A customer entering an internet retail store, illustrating the convenience of online shopping.
Bank of America’s Take on AMZN
Trump’s tariffs are negative for e-commerce companies, the bank noted. But AMZN is better positioned than many other firms in the sector to cope with the duties, according to Bank of America. One reason for the latter conclusion is that the many goods available on the conglomerate’s platform will enable consumers to locate items that are relatively cheap in spite of the tariffs.
And secondly, because AMZN’s fees are based on retail prices, the higher prices caused by tariffs may help the company, according to Bank of America.
Amazon’s Expanded Deal With GEV
AMZN and GEV yesterday disclosed that the latter firm would supply Amazon “with new offerings across a broad scope of solutions to electrify and decarbonize data centers across North America, Europe, and Asia.”
