<div id="readability-page-1">Trump's tariffs brought the stock market to its knees on Thursday. The introduction of profit-sapping importation fees drove the S&amp;P 500 (^GSPC -4.84%) to close almost 5% lower. As a leading seller of imported goods, e-commerce giant Amazon (AMZN -8.89%) took a particularly hard hit. The stock closed the day down 9%. Amazon's share price is back where it was a year ago, erasing 2024 gains of more than 30%. Following along with Wall Street's general trend, Amazon's price drop started in February and accelerated as the tariff threat evolved from a threat to a real policy. But this ain't Amazon's first rodeo, and it won't be the last by a long shot. Here's why I see this price drop as an open invitation to buy more Amazon stock at a discounted price. <h2>Amazon's history of dramatic (but temporary) price dips</h2> You might recall some classic Amazon price drops of the past. Here's a memory-jogging price chart from the start of 2008 to April 3, 2025. The S&amp;P 500's total return is included as a comparative courtesy. Don't worry -- there won't be a quiz: <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/f21886b5cd1c1ae50c10b28990330f5a.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="380" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/f21886b5cd1c1ae50c10b28990330f5a.png"/> AMZN Total Return Level data by YCharts The more recent mega-cuts are pretty easy to see. For example, a couple of disappointing earnings reports led to price drops of 8.8% on Aug. 2 last year and 8.4% on Feb. 3, 2023. Another earnings miss resulted in a 14.1% single-day plunge on April 29, 2022. You're with me so far, right? And who can forget the start of the COVID-19 lockdowns? Amazon's stock price crashed 22% lower in about a month, including several large single-day drops. That one is squeezed in between a bullish earnings report and a quick recovery, right after the 2020-year marker. I'm sure you can find it. What about the four consecutive earnings misses in 2014? Zoom in just before the 2015 divider, and you should see four one-day price cuts ranging from 8.4% to 11% in that year. The full-year trend is probably easier to spot than those specific corrections. I drew that graph all the way back to 2008 so you could see how the infamous subprime mortgage meltdown affected Amazon's stock price. You might need a microscope, but the data is there. There were too many quick price drops to mention them all here (and a couple of quickly erased rebounds along the way), but I'm talking about a 36.3% value loss from Sept. 16 to Oct. 16. The S&amp;P 500 lost 23.2% in the same period. The subprime stuff was quite scary at the time. The market took years to recover from that economic disaster. Amazon, on the other hand, righted the proverbial ship before the end of 2009 and nearly doubled in value in the three-year span starting on Jan. 1, 2008. <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/3f88ff46fa59d9080b52b04c6ae5a7ae.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="380" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/3f88ff46fa59d9080b52b04c6ae5a7ae.png"/> AMZN Total Return Level data by YCharts <h2>Patience pays when you're playing the long game</h2> In other words, Amazon has a proven ability to come back from large price drops and prove the doubters wrong. And in the end, longtime Amazon investors shouldn't worry too much about exactly when they picked up the stock. If you invested $10,000 in Amazon on New Year's Day 2007 and never touched that position again, you'd have $388,000 in your pocket today. Sure, you could have tripled your profit to a cool $1 million by timing the subprime mortgage crash perfectly, but there's more luck than skill in that game. Impossible perfection will always be best, but even the worst possible Amazon investment in 2008 would have delivered game-changing returns by now. It's not easy to find that 36% price drop on the chart. The tariff terror of 2025 will eventually fade into just another forgettable chart squiggle. The main thing to remember is that Amazon's start-up-like mentality and willingness to pursue new business ideas should keep the stock ahead of Wall Street's broader trends in the long run. <h2>Why I'm clicking buy while others panic</h2> When the market makers give you a bargain-bin price point, you should at least consider taking advantage of it. This probably isn't the exact market bottom, and it's perfectly fine to settle for a pretty decent discount. Nobody gets the timing perfectly right. I like my metaphors mixed, and time in the market heals all wounds for Amazon investors. I'll gladly hold on to my Amazon shares, and might even pick up some more while the discount lasts. </div>

AMZN

Amazon's stock fell 9% due to Trump's tariffs, erasing 2024 gains. Despite this, the author views the price drop as a buying opportunity, citing Amazon's history of recovering from significant declines. They emphasize that long-term investors have seen substantial returns, and the current dip is just a temporary setback. The author plans to hold and potentially buy more shares, believing that Amazon's innovative approach will lead to future growth.

- Trump's tariffs caused a significant decline in the stock market, with the S&P 500 dropping nearly 5% and Amazon's stock falling 9%, erasing its 2024 gains.  
- The article highlights Amazon's historical resilience against price drops, noting past instances where the stock rebounded after significant declines, suggesting that current price dips present a buying opportunity.  
- The author argues that long-term investors should remain optimistic about Amazon's recovery potential, emphasizing the company's innovative approach and ability to navigate market challenges.

Amazon's Stock Takes the Tariff Tumble. Here's Why I'm Still Holding.