The Clap
Amazon (NASDAQ:AMZN) saw its stock decline 51% in 2022, its worst year since 2000.
What
Apart from Meta (NASDAQ:META) & Tesla (NASDAQ:TSLA) no other mega-cap tech company has had a worse year than Amazon.
The company’s market cap shrunk to almost half compared to the start of the year, from $1.7tn to $834bn. This was largely due to this year’s economic pressures, which included runaway inflation rates and sky-high interest rates.
So What
In addition to macroeconomic pressures, the easing of COVID restrictions and the gradual return of the economy to its normal activity significantly hurt Amazon, with consumers not depending on online retail as during the pandemic.
This led to a decrease in Amazon’s growth following strong 2020 and 2021.
Now What
In a bid to maintain profitability, Amazon hit the brakes on some expansion plans and cut parts of its workforce.
Analysts expect Amazon to continue to struggle during 2023.
