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.”
Under the deal, the two companies will also cooperate to develop wind-energy projects and “explore additional opportunities for GE Vernova to provide power generation equipment and services” to AMZN. Moreover, Amazon will work with GE Vernova on R&D related to energy issues.
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READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.
