Amazon stock drops 12%, presents buying opportunity

Growth stocks are facing challenges as the economy shows signs of uncertainty. Recent trade tariffs introduced by President Donald Trump have raised concerns about higher prices in the U.S. This situation has led investors to sell off growth stocks, pushing the Nasdaq Index down. Some of the biggest companies are now trading at lower valuations, presenting a buying opportunity for investors. One notable company is Amazon, which has seen its stock drop by 12% over the past three months. As a well-known e-commerce giant, Amazon sells a wide range of products and services, making it a regular part of many consumers' lives. The company has a strong history of earnings, generating billions consistently and reinvesting in its business. Amazon's recent stock decline is partly due to fears that tariffs could increase operational costs and reduce consumer spending. However, Amazon has improved its cost structure in recent years. For instance, it has used new technologies and strategies to lower expenses and recover from past downturns. Last year, Amazon reported an 11% increase in revenue and nearly doubled its profit. Amazon Web Services (AWS), the company's cloud division, has also performed well despite economic challenges. It saw consistent revenue growth, even when consumers had less to spend. As demand for AI technology increases, AWS is well-positioned to benefit. Currently, Amazon's stock is considered fairly priced compared to its future earnings potential. While economic uncertainties may create some challenges, Amazon's strong cost management and diversified business model may help maintain its growth in the long run. Investors see current market conditions as a potential opportunity to buy into a proven company.