President Trump’s newly announced tariff policy has sent shockwaves through the stock market, with major indices plummeting in response. The sweeping new tariffs, which include duties as high as 46% on goods from most of America’s large trading partners, have hit companies like Apple and Amazon hard.
Apple, the world’s most valuable company, has seen its stock lose 16% in just two days, while Amazon has tumbled nearly 13%. However, despite the uncertainty, analysts at major Wall Street banks believe that both companies have strong underlying fundamentals that will help them weather the tariff storm.
According to Bank of America analyst Wamsi Mohan, Apple has multiple pathways to mitigate the damage from the tariff fallout. These include raising prices on products, pressuring suppliers, and exploring exceptions for certain items. Mohan puts a Buy rating on AAPL shares, with a $250 price target that suggests a 33% gain for the next 12 months.
In contrast, Goldman Sachs analyst Eric Sheridan believes that Amazon has several levers at its disposal to mitigate the impact of higher tariffs. These include negotiating with vendors, increasing prices on certain items, and shifting product offerings towards those with lower tariffs or US domestic alternatives. Sheridan quantifies his stance with a Buy rating for AMZN, and a $255 price target that points toward a 49% gain for the stock.
Overall, while the tariff policy has created uncertainty in the markets, analysts believe that companies like Apple and Amazon have the flexibility to adapt and thrive in the face of changing trade dynamics.
Source: https://www.tipranks.com/news/trumps-tariffs-hit-apple-and-amazon-stocks-but-analysts-at-big-banks-stay-firm