Amazon shares break 2020 lows for the first time, heading for worst year since dot-com bust
Shares of Amazon.com Inc. The tech giant first closed below its March 2020 low on Thursday, as the tech giant’s stock entered its worst year since the dot-com bust.
Amazon
AMZN,
The stock fell 3.4% on Thursday to $83.79, its lowest closing price since March 12, 2019, with the second-highest daily volume in the S&P 500 index.
SPX,
second only to Tesla Inc.
TSLA,
Amazon is the 45th stock in the S&P 500 to close at its lowest level in 2020 since the start of the COVID-19 pandemic, and one of only 26 stocks to close below that number on Thursday.
Amazon stock is down nearly 50% year-to-date, at 49.7%, while the S&P 500 is down 18.6% and the Dow Jones Industrial Average is down.
DIA,
fell 8.2%. This will be Amazon’s second worst year on record, just behind the dot-com bankruptcy year of 2000, when Amazon shares fell 79.6%.
Amazon is on the verge of a loss for the year after posting total profits of nearly $55 billion in 2020 and 2021, although the company should be profitable regardless of the losses incurred from its investment in Amazon. Rivian Automotive Inc.
RIVN,
Revenue growth has also slowed a lot this year, and Amazon has begun cutting costs and workforce after years of phenomenal growth.
Amazon’s e-commerce business is expected to generate roughly flat revenue in 2022 compared to 2021, due to the boom in online sales during the first two years of the pandemic. has decreased. The company’s cloud computing division – Amazon Web Services, or AWS – also experienced a slowdown in revenue growth, while continuing to drive most of Amazon’s operating profits.
Amazon stock ended the day with a slightly low market cap at $855 billion, after falling out of the trillion-dollar club early last month. Only three public US companies are currently worth more than a trillion dollars – Apple Inc.
APL,
Microsoft Corporation
MSFT,
and Alphabet Inc.
GOOGL,
Still, Wall Street remains bullish on Amazon’s chances of reversing its slide. Of the 54 analysts tracked by FactSet, 49 have the stock’s equivalent of a “buy” rating, with four “hold” and one “sell” rating. The average analyst price target as of Thursday is $134.64, according to FactSet, 60% above current prices.
