Amazon Shares Drop 1.57% with $9.28B Volume (Ranked 8th) as Supplier Discounts and Tariff Ruling Create Retail Uncertainty

Market Snapshot

On January 13, 2026, Amazon (AMZN) shares fell 1.57%, marking a decline in the stock’s value amid heightened market volatility. The stock traded with a volume of $9.28 billion, ranking eighth in trading activity for the day. The drop followed reports that Amazon is pressuring suppliers to lower prices ahead of a U.S. Supreme Court ruling on President Donald Trump’s broad tariffs, which could reshape import costs and retail pricing strategies. The broader market also saw weakness, with the S&P 500 and Nasdaq declining by 0.2% and 0.1%, respectively, contributing to a cautious trading environment.

Key Drivers

Amazon’s supplier negotiations, aimed at mitigating the financial impact of potential tariff increases, emerged as a critical factor in the stock’s decline. The Financial Times reported that Amazon is seeking discounts ranging from low single digits to 30% from vendors, a move to offset risks posed by the Supreme Court’s impending decision on Trump’s global tariff program. The court is scheduled to rule on January 14, with the outcome expected to influence pricing, inventory strategies, and supplier contracts. Analysts noted that Amazon’s retail segment is particularly vulnerable to tariffs, which act as import taxes and directly affect cost structures.

The uncertainty surrounding the tariff ruling has heightened scrutiny of Amazon’s cost management strategies. While the company’s retail division faces immediate challenges, its advertising and Amazon Web Services (AWS) businesses remain key growth drivers. TD Cowen analysts raised their price target for Amazon to $315 from $300, citing strong advertiser sentiment and projected revenue growth. Over 60% of Amazon advertisers plan to increase spending in 2026, and the firm estimates ad revenue could rise from $68.2 billion in 2025 to $141.7 billion by 2030. This growth trajectory, combined with AWS’s accelerating revenue expansion, underscores Amazon’s ability to offset retail headwinds with high-margin services.

Regulatory developments also influenced the stock’s trajectory. Italy’s antitrust authority reduced Amazon’s record fine to €752.4 million ($878.2 million) from €1.128 billion, a decision that, while less impactful than tariff-related risks, highlights ongoing regulatory scrutiny. However, this reduction did not offset broader concerns about supplier resistance to steep discounts. Suppliers are navigating rising input and shipping costs, making it difficult to secure concessions without compromising margins. If the tariff structure remains unchanged, Amazon will need to balance pricing and volume carefully to avoid margin erosion.

The market’s reaction to Amazon’s supplier strategy reflects a broader shift in investor focus. With earnings season approaching, Wall Street is prioritizing profit drivers over top-line growth. Subtle changes in supplier terms, such as those reported, are now under closer scrutiny. TD Cowen’s upgrade of Amazon’s price target underscores confidence in its advertising and cloud divisions, which are expected to drive long-term value. Meanwhile, the Supreme Court’s tariff ruling on January 14 will serve as a pivotal event, with potential ripple effects on Amazon’s retail operations and broader market sentiment.

In summary, Amazon’s stock decline stems from a combination of near-term supply chain pressures, regulatory uncertainty, and macroeconomic headwinds. While the company’s cost-cutting measures aim to mitigate tariff risks, the success of these efforts will depend on supplier cooperation and the court’s final ruling. Investors remain attuned to Amazon’s ability to leverage its advertising and AWS businesses to offset retail challenges, positioning the stock for potential recovery if these segments continue to outperform expectations.