The $600 Million Reason Amazon Stock Is Up Today

Amazon (AMZN) shares are ripping higher on July 31 after the e-commerce behemoth said it has received about $600 million in tariff refunds following a landmark Supreme Court ruling. CFO Brian Olsavsky confirmed on the Q2 earnings call that AMZN has recovered the funds from President Donald Trump's administration’s unlawful import duties and plans to pass them back, partly, to affected customers. 

Including today’s gains, Amazon stock is up nearly 20% versus the start of this year. 

Significance of Tariff Refunds for Amazon Stock

The payout follows the Supreme Court’s decision in Learning Resources, Inc. v. Trump, which declared tariffs imposed under the International Emergency Economic Powers Act (IEEPA) illegal. 

Investors view the cash infusion and Amazon’s plan to proactively refund customers and reinvest the remainder into low retail pricing as major drivers for operating margins and market dominance.

Investors should also note that algorithmic buying is in play as well on Friday. 

As investors cheered the tariff refund announcement and Amazon’s impressive Q2 results, AMZN shares ripped through their major moving averages (MAs), accelerating bullish momentum in the process.  

What Else Is Driving AMZN Shares Higher?

Amazon shares are also flying high because the firm’s Q2 earnings handily topped Street estimates on the back of sharp re-acceleration in AWS, reinforcing strong artificial intelligence (AI) demand.

A much better-than-expected 37% growth in the cloud segment even overshadowed a “capex hike” to $220 billion, which management attributed primarily to higher memory costs. 

Adding to momentum today is a bullish research note from TD Cowen analysts. 

Citing tariff refund and an impressive quarterly print, the investment firm maintained its “Buy” rating on AMZN and raised its price target to $350, indicating potential for another 27% rally from here. 

Amazon Remains Buy-Rated Among Wall Street Firms

Other Wall Street analysts are also keeping bullish on AMZN stock, especially after management reaffirmed that AI demand is outpacing supply, and that is expected to remain true in 2027 as well.

The consensus rating on Amazon sits at “Strong Buy,” with the mean price target of roughly $315 indicating potential upside of 17% from current levels.