Speaking before Amazon.com (AMZN) reported its first-quarter financial results last week, well-known investor Jason Brown, the author of The Brown Report, called AMZN “oversold,” and advised investors to buy the shares.

Appearing on the Schwab Network, Brown stated that AMZN’s “pricing power” would shield it to some extent from the negative impact of the Trump administration’s tariffs.

Amazon’s “Pricing Power”

AMZN stock dropped sharply earlier this year because “people got a little afraid of the tariffs,” Brown said. However, Amazon “can pass its higher costs onto its distributors,” the prominent investor explained. Further, the distributors also have some “pricing power” of their own, he said.

Amazon’s Other Positive Attributes

The conglomerate’s cloud and ad businesses “are going well, and (Amazon has) a subscription business,” the investor noted.

Consumers “did not stop paying for their Amazon Prime memberships in the last 120 days,” he said.

More About AMZN

Analysts, on average, expect the tech giant’s earnings per share to climb to $6.21 this year from $5.53 in 2024, and the mean estimate calls for its EPS to rise to $7.23 in 2026.

In the last month, the shares have dropped 1%, while they have sunk 20% in the last three months.

While we acknowledge the potential of AMZN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.