Amazon Could Be the Future Owner of TikTok. Should You Buy, Sell, or Hold AMZN Stock Now?
Amazon (AMZN) has spent years flirting with social media, acquiring Twitch for live streaming and Goodreads for book reviews while experimenting with short-form video through its now-defunct Inspire feature. Now, Amazon is making its boldest play yet, placing a last-minute bid for TikTok as the platform faces a U.S. ban unless Chinese parent company ByteDance secures an approved buyer.
With TikTok's massive user base and influence, Amazon sees an opportunity to expand its advertising dominance and engage younger audiences. But the competition is fierce. Software company Oracle (ORCL), investment firm Blackstone (BX), and multiple billionaire-backed consortiums are also circling while regulatory hurdles loom large. The deal could supercharge Amazon's ambitions or entangle it in geopolitical and antitrust challenges.
With the deadline just weeks away after President Donald Trump granted TikTok a 75-day extension early in April, is this a rare window for investors to snag Amazon's shares while they're still 26% off their YTD peak – or is it better to sit tight or step back?
About Amazon Stock
Amazon (AMZN) is a global tech powerhouse. Dominating U.S. e-commerce, its ventures span cloud computing, entertainment, and smart devices. With initiatives in artificial intelligence, logistics, and healthcare, Amazon continually redefines the digital landscape.
Amazon, with a $1.9 trillion market cap, built its empire brick by digital brick, soaring 763% over the past decade. But 2025 hasn't been kind. This Magnificent Seven stock has tumbled 18% YTD.
Amazon Tops Q4 Earnings Forecasts
On Feb. 6, Amazon reported its Q4 earnings results, closing out 2024 with serious momentum. Revenue climbed 10% year-over-year to $187.8 billion, while adjusted EPS nearly doubled to $1.86. The surge came from tight operational execution and better margins across the board.
AWS grew 19% annually to $28.8 billion.
Free cash flow rocketed to $38.2 billion in 2024, giving Amazon room to bet big on AI and future takeovers. Sitting on nearly $79 billion in cash and cash equivalents as of Dec. 31, 2024, it's locked, loaded, and ready for whatever comes next.
Plus, Amazon's logistics revamp is paying off. A shift to regional fulfillment is slashing costs and speeding up delivery, fortifying its grip on retail dominance.
Still, the shine dimmed post-earnings. Shares slid 4.1% on Feb. 7, spooked by slowing cloud computing momentum concerns and a soft Q1 outlook, dampened by currency headwinds and the missing Leap Year day.
Management projects Q1 revenue between $151 billion and $155.5 billion, factoring in a $2.1 billion forex hit. Operating income is expected to land between $14 billion and $18 billion.
Amazon's 'Eleventh-Hour' TikTok Bid Raises Stakes
Amazon's surprise bid for TikTok came just days before the initial April 5 deadline, with ByteDance required to sell to a U.S.-approved buyer or face a ban on national security grounds. Amazon submitted an offer and sent a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick, signaling its late interest. The bid coincided with President Donald Trump's meeting with officials to discuss potential buyers.
Competition is fierce. AI startup Perplexity pitched a TikTok merger in January, claiming it could rebuild the algorithm independently and host it in U.S.-controlled data centers to avoid monopoly risks. Oracle is leading a bid to buy out TikTok's Chinese investors. Blackstone is also considering a stake.
With 170 million U.S. users at stake, Amazon sees TikTok as a strategic asset for expanding its digital advertising business. However, regulatory scrutiny and antitrust concerns could complicate the deal.
If Amazon succeeds, it could reshape its media and ad business, but a missed deal might look like a very public failure. With big players circling, the spotlight is squarely on whether Amazon's late push will pay off or fall flat.
What Do Analysts Expect for Amazon Stock?
After Amazon's takeover bid, Citi sees Amazon's move as stellar. The bank held its $270 price target and a 'Buy' rating on AMZN stock.
With TikTok Shop hitting $9 billion gross merchandise volume (GMV) in the U.S. last year and having an impressive U.S. user base, the synergies are electric. Despite whispers that Amazon's offer isn't being taken seriously, if the company manages to pull it off, it could be Amazon's next great growth lever.
AMZN has a consensus 'Strong Buy' rating overall. Of the 53 analysts in coverage, 48 recommend a 'Strong Buy,' four suggest a 'Moderate Buy,' and the remaining one gives a 'Hold.'
The mean price target of $260.87 suggests upside potential of 45% from the current price levels.
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