Amazon (AMZN) shares are ripping to the upside on Monday after the U.S. and China reached a temporary deal that clears the path for de-escalation of trade tensions between the world’s largest economies. 

U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day pause on most reciprocal tariffs following productive talks over the weekend in Geneva.   

Despite today’s gain, Amazon stock is still down nearly 15% versus its year-to-date high. 

Significance of U.S.-China Trade Deal for Amazon Stock

AMZN shares are rallying following what is being dubbed as the first step in the deescalation of trade tensions between the U.S. and China as the latter is an important market for the e-commerce giant. 

According to a Raymond James estimate, as much as 30% of its gross merchandise value (GMV) comes from China. In 2024, the China generated about 14% of Amazon’s advertising revenue as well.  

So, a broader trade deal between the two countries could eliminate concerns of a significant hit to Amazon’s earnings, potentially helping its stock reclaim some of the lost ground in the months ahead. 

BofA Analyst Sees Upside in AMZN Shares to $230

Amazon stock is worth owning at current levels also because the continued use of robots could lower its costs moving forward, argued a Bank of America analyst in his research note on Monday. 

The online retailer already relies on robots but for fulfillment only, which accounts for about 17% of its overall costs. 

But Amazon could eventually tap on robotics for delivery as well to trim its shipping costs, which currently stand at about 17% of the total, the investment firm added in its report. 

Its analyst Justin Post currently has a “Buy” rating on AMZN shares. He expects the tech stock to hit $230 by the end of this year as automation continues to cut costs, improve efficiency, and add more meaningfully to the company’s bottom line.  

Should You Invest in Amazon in 2025?

Investors should note that Post is among the more cautious analysts on Amazon.

The consensus rating on AMZN stock currently sits at “Strong Buy” with a mean target of $241, suggesting potential upside of an even bigger 16% from current levels.