Andy Jesse, CEO of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, USA, on Tuesday, October 5, 2021.
David Ryder | Bloomberg | Getty Images
Amazon shares have given up almost all proceeds from the pandemic.
If stocks close below $ 2,170 per share in which they traded earlier on Tuesday, it will drop all significant gains in the stock market since the start of the Covid-19 pandemic in 2020. The last time Amazon traded around this level was on February 20, 2020, when stocks reached an intraday high of $ 2,176.79.
Shares recovered slightly by mid-afternoon Tuesday, rising about 0.8% to about $ 2,194 each, which is roughly where they traded when stocks began to rise in April 2020, when people started shopping more online during Covid lock. This is more than a 40% discount from the company’s 52-week high of $ 3,773.08, which reached July 13, 2021.
Amazon shares are now trading where they were in February 2020.
CNBC
Shares of the company rose sharply in 2020 and 2021, when e-commerce unfolded during the pandemic, and consumers flocked to online stores for everything from face masks and Lysol wipes to patio furniture and dumbbells. Amazon and other digital retailers are now facing increasing pressure to prove they can sustain the high growth they enjoyed during the crisis when the economy reopens and consumers return to physical stores.
Amazon’s latest earnings report eased these concerns a little. The company posted the slowest revenue growth since the dotcom crash and presented a forecast for the current quarter that is inconsistent with Wall Street estimates.
Changing market conditions have added another problem. Investors began withdrawing from technology stocks late last year, driven by rising inflation and the specter of rising interest rates. This trend accelerated this year after Russia invaded Ukraine in February, leading to further increases in oil prices. The stock sold off in the last days after the Federal Reserve raised its base interest rate on Wednesday.
The sale hit the tech sector particularly hard: tech giants lost more than $ 1 trillion in value from Thursday to Monday.
WATCH: “We now like Big Tech stocks like Amazon and Apple,” says Laura Martin of Needham.
