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why has amazon stock dropped

by Mrs. Margaret Blanda Published 3 years ago Updated 2 years ago
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Its stock has fallen about 10% since it posted its second-quarter results. US-China trade tensions, heightened competition, mounting regulatory scrutiny, and political criticism have also pressured the stock. Similar to its large tech peers, Amazon has been impacted by growing regulatory scrutiny.

That being said, here are two big things to keep in mind: First, J.P. Morgan notes that that while part of the decline in e-commerce spending was due to a "continued resurgence of brick and mortar retail sales," which may indicate a shift in consumer spending away from Amazon, the "ongoing supply chain headwinds" were ...Mar 7, 2022

Full Answer

Why you should still short Amazon stock?

Mar 07, 2022 · Shares of Amazon ( AMZN -2.46% ) stock tumbled today on some very curious news: Analyst company J.P. Morgan released a note (reported on TheFly.com) that named Amazon the bank's "top internet idea ...

Why does Amazon not split its stock price?

Nov 01, 2021 · Shares of e-commerce giant Amazon.com ( AMZN -2.46% ) stock took a hit Monday, falling 2.1% through 3 p.m. EDT. In the absence of bad news to explain the drop, I am forced to conclude that Amazon ...

Is Amazon stock a good investment?

Sep 28, 2021 · Shares of Amazon ( AMZN -2.11% ) fell on Tuesday after interest rates rose and an analyst warned that rising labor costs could pressure the e-commerce giant's profits. As of 2:45 p.m. EDT today,...

Why is Amazon stock worth so much?

Jan 22, 2022 · Despite the stock already having slid sharply year to date, shares fell more than 4% on Friday. As of 1:25 p.m. ET, the stock was down 4.2%. The slide is likely primarily due to bearishness in the ...

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Why is Amazon shares down?

Amazon shares have shed 11.2% since the start of 2022, a larger loss than both the S&P 500 Index and Nasdaq Index. This could be in part because of Amazon belonging to the consumer discretionary sector, which has been one of the worst performing sectors recently as inflation-based sector rotation has gained momentum.Feb 2, 2022

Why is Amazon stock down 2021?

Amazon shares increased a meager 2.4% in 2021, vastly underperforming its Big Tech peers. The e-commerce company's stock was weighed down by tough year-over-year comparisons, underperforming earnings results and investor concerns around rising costs.Jan 5, 2022

Can I buy 1 share of Amazon?

On Wednesday, the company said that its board had approved a 20-for-1 stock split. The move means if you already own Amazon stock, you'll receive 20 shares for each single share you own, and if you don't own Amazon stock, you'll be able to buy it at a much lower price.Mar 10, 2022

Is Amazon a good stock to buy 2021?

According to Yahoo Finance, of 47 analysts following Amazon stock as of Feb. 11, 15 rated it a “strong buy,” 28 rated it a “buy,” three rated it a “hold” and one gave it a rating of “underperform.” None of the analysts recommended selling it.Feb 15, 2022

What happened

Shares of e-commerce giant Amazon.com ( AMZN 1.61% ) stock took a hit Monday, falling 2.1% through 3 p.m. EDT.

So what

Specifically, the news that more than two years after it first revealed plans to build its own constellation of broadband internet satellites, Amazon is finally getting " Project Kuiper " off the ground.

NASDAQ: AMZN

The news broke this morning: Amazon has hired space launch start-up ABL Systems to launch two Project Kuiper satellites "by Q4 2022" atop ABL's "all-new RS1 rocket." Amazon seems excited by the development. According to a statement on the Amazon News website:

Now what

Now what could possibly be wrong with all that? Three problems spring to mind:

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What happened

Shares of Amazon.com ( AMZN -3.58% ) fell on Friday following the release of the e-commerce giant's second-quarter results. As of 3:15 p.m. EDT, Amazon's stock price was down more than 7%.

So what

Amazon's net sales jumped 27% year over year to a staggering $113.1 billion, fueled by strong gains in its cloud computing and advertising businesses. Amazon Web Services (AWS) delivered revenue growth of 37%, up from 32% in the first quarter.

Now what

Chief Financial Officer Brian Olsavsky said during a conference call with analysts that Amazon's e-commerce growth is slowing as the economy reopens. "I think the impact of people getting vaccinated and getting out in the world, not only shopping offline, but also living life and getting out, it takes away from shopping time," Olsavsky said.

What happened

Shares of Amazon ( AMZN 0.92% ) fell on Tuesday after interest rates rose and an analyst warned that rising labor costs could pressure the e-commerce giant's profits.

So what

Growth stocks like Amazon are valued based upon their expected future earnings and cash flows. When interest rates increase, investors typically discount their profit projections at a higher rate to account for the larger yields they can earn on bonds and other fixed-income investments.

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With the yield of 10-year Treasury notes surging above 1.5% in recent days, the prices of many growth stocks have fallen in kind.

Now what

While it's certainly possible that Amazon could deliver lackluster performance in the quarters ahead, investors will likely be best served by adopting a longer-term perspective. Notably, Nowak's reduced price target still represents potential gains to shareholders of roughly 24% from the stock's current price near $3,300.

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What happened

Shares of e-commerce and cloud computing giant Amazon ( AMZN 1.61% ) are taking a punch in the gut today. Despite the stock already having slid sharply year to date, shares fell more than 4% on Friday. As of 1:25 p.m. ET, the stock was down 4.2%.

So what

Showing how the overall market is pessimistic on Friday, the S&P 500 is down 1.1% as of this writing. And the tech-heavy Nasdaq Composite is down 1.6%, with many growth stocks, including Amazon, down several percentage points or more.

NASDAQ: AMZN

The market's sell-off on Friday seems to be prompted by Netflix 's ( NFLX 0.20% ) post-earnings 20%-plus drop. The company's guidance for first-quarter subscribers was far below expectations, prompting concerns from investors about intensifying competition for the streaming service.

Now what

Amazon will soon get a chance to prove that its sell-off has gone too far. The company's fourth-quarter earnings report is scheduled for Thursday, Feb. 3, after market close.

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