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Follow on Google News | ![]() The e-commerce behemoth Amazon has come a long way, and its stock price has plummetedEveryone knows the age old tale that if you bought AMZN stock when it was merely an online bookseller and kept it till now, you would be a multimillionaire. A $10,000 investment would be worth around $11.7 million today.
AMZN's stock has lost 40% of its value from its all-time high and is down nearly 30% in 2022 alone, as rising inflation, increasing expenses and a weakening economy put pressure on customers. Wall Street is still looking good but Main Street isn't. AMZN isn't the only company suffering from the consequences of a depressed customer. Many internet shops are struggling from the public backlash, whether they're selling general stuff like AMZN and Etsy Inc. (ETSY) or Carvana Co. (CVNA) who buys and sells used cars in the United States. ETSY has lost 60% of its worth this year while CVNA has lost 80% of its value while Chewy Inc. (CHWY) has lost 53%. The parent company of Wish.com being ContextLogic Inc. (WISH) has lost 48%, and even the upmarket shop Poshmark Inc. (POSH) has lost 34% of its value. This is not only happening in the United States. MercadoLibre Inc. (MELI), a Latin American retailer, is down 31%, while Alibaba Group Holding Limited (BABA) and JD.com Inc. (JD), both based in China, have gone down by 24% and 20% respectively. The recent earnings report from AMZN revealed how consumers are cutting back on their spending. While overall sales were up 7% year over year, first-quarter retail sales fell by almost 2% to $56.5 billion, owing to AMZN's foreign division. Nonetheless, U.S. retail sales were up 7.5% from 2021. While AMZN's e-commerce expertise gets the most attention, its cloud computing activities have long been and continue to be a profit centre for the company. Amazon Web Services (AWS) had a 37% increase in sales to $18.4 billion in the first quarter, while operating profits jumped 57% to $6.5 billion. Because companies will continue to move their operations and data to the cloud, AWS should continue to grow at a breakneck pace, even as the number of rivals entering the market grows. You may connect to our weekly latest newsletter in finance, you may also visit us at Alpha Alliance Capital Limited through our website https://alphaalliancecapital.com/ End
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