Amazon.com (AMZN) is advancing 2.5% after Bank of America wrote today that the conglomerate's e-commerce business would be relatively well-positioned to withstand President Donald Trump's tariffs.

Additionally, AMZN yesterday announced an expansion of its previous deal with GE Vernova (GEV).

A customer entering an internet retail store, illustrating the convenience of online shopping.

Bank of America's Take on AMZN

Trump's tariffs are negative for e-commerce companies, the bank noted. But AMZN is better positioned than many other firms in the sector to cope with the duties, according to Bank of America. One reason for the latter conclusion is that the many goods available on the conglomerate's platform will enable consumers to locate items that are relatively cheap in spite of the tariffs.

And secondly, because AMZN's fees are based on retail prices, the higher prices caused by tariffs may help the company, according to Bank of America.

Amazon's Expanded Deal With GEV

AMZN and GEV yesterday disclosed that the latter firm would supply Amazon "with new offerings across a broad scope of solutions to electrify and decarbonize data centers across North America, Europe, and Asia."

Under the deal, the two companies will also cooperate to develop wind-energy projects and "explore additional opportunities for GE Vernova to provide power generation equipment and services" to AMZN. Moreover, Amazon will work with GE Vernova on R&D related to energy issues.

While we acknowledge the potential of AMZN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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 the cheapest AI stock. READ ALSO  8 Best Wide Moat Stocks to Buy Now  and  30 Most Important AI Stocks According to BlackRock 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.