Amazon Stock Decline Reflects Broader Market Jitters Amid Earnings and Tariff Concerns

Amazon shares tumbled 8.3% Friday as mixed Q2 results and new tariff threats rattled investors. While the company surpassed Wall Street's revenue ($167.7B vs. $162.1B expected) and EPS ($1.68 vs. $1.33) estimates, slower growth in AWS (18% YoY) compared to Azure (39%) and Google Cloud (32%) sparked concerns about cloud dominance erosion. CEO Andy Jassy's defense of AWS's market leadership—"the second player is about 65% of the size of AWS"—failed to stem the selloff.

The broader tech slump deepened after President Trump's unexpected tariff hike (10%-41%) on international goods, bypassing anticipated extensions. Amazon's exposure to global trade amplified its decline, mirroring the S&P 500's 1.7% drop and Nasdaq's 2.3% slide. Markets had priced in tariff delays, leaving e-commerce and cloud stocks particularly vulnerable to growth reassessments.