Why Amazon Stock Gained 11% in May
Amazon (NASDAQ: AMZN) stock gained 11% in May, according to data provided by S&P Global Market Intelligence. While there wasn't any new specific to Amazon, many stocks gained on the pause in tariffs on Chinese goods.
Amazon has an unbeatable hold on U.S. e-commerce. It has a strong moat in its scale and dominance, and it's always upgrading its platform to stay on top.
CEO Andy Jassy noted on the most recent earnings call that Amazon has several advantages over other retailers in reference to higher tariffs. He pointed out that Amazon mostly sells low-priced essentials, which puts it in a strong position when it comes to tariffs. It works with many sellers and has millions of products, and customers are likely to be able to find what they need somewhere on the platform. On top of that, in times of uncertainty, shoppers tend to shop with a name that they trust, and Amazon has been building that for years.
Source Fool.com
