Amazon’s Stock Trajectory Amid Tech Sector Volatility

Technology stocks, particularly those in the artificial intelligence (AI) sector, have dominated market gains in recent years. Amazon (AMZN), straddling consumer goods and tech, has ridden this wave with double-digit growth over the past three years. Yet 2025 has proven lackluster, with shares dipping 1% year-to-date amid broader concerns.

Investor apprehension stems from two fronts: the potential impact of former President Donald Trump's import tariffs on Amazon's e-commerce operations, and recurring skepticism around tech valuations. When the sector appears overextended, capital often rotates elsewhere—a pattern that has weighed on Amazon's performance this year.

The company's moat remains formidable. Its Prime subscription service, combining logistics with digital content, continues to lock in customer loyalty. Global e-commerce revenue still flows relentlessly. But whether these strengths can offset macroeconomic and sectoral headwinds remains the critical question for the year ahead.