Buy the Dip or Brace for Impact? Amazon and Apple Face Make-or-Break Earnings Moment

With Amazon and Apple set to report on May 1, investors are deciding if the recent drop in these tech giants is a buying opportunity or a warning sign.

 

Amazon stocks have declined by nearly 15% in 2025 due to tariff-related volatility, but the analysts are overall positive. Consensus estimates are anticipating that Amazon will post Q1 revenue of $155 billion, an 8% rise from the year-earlier period, with AWS cloud growth at 17%. Though Oppenheimer recently reduced its price target to $220 on account of margin compression by tariffs, its 26 Visible Alpha analysts continue to rank Amazon a "buy" with an average target of $241-roughly 29% higher than the current level. Amazon's leadership in e-commerce and cloud, as well as its ambitious investments in AI, underpin its long-term argument, although tariffs and currency movements represent near-term headwinds. Most analysts suggest holding or waiting for post-earnings clarity, but long-term investors can be tempted by current valuation considering Amazon's past performance of recovery after the investment cycles.

 

Apple shares, which are 21% down this year, are also being pressured by tariffs and weakening product upgrades. It's rated a "Moderate Buy" by analysts, who have a mean target of $251.72, which reflects 31% potential upside. Yet, in the short term, it's overshadowed by tariff threats, manufacturing realignments, and subdued earnings expectations. Experts believe Apple is oversold and historically robust, yet advise waiting for earnings and management's mitigation efforts before taking a bite of the dip.

 

In short, both stocks are promising in the long term but investors are urged to exercise care and wait for post-earnings indications to commit fresh sums.

 

Sources: Nasdaq, Barchart, Zacks, Yahoo Finance, Seeking Alpha