Amazon CEO Andy Jassy speaks during the GeekWire Summit in Seattle October 10. 5, 2021.
David Ryder | Bloomberg | Getty Images
AmazonThe share price of has lost all of its gains generated by the pandemic and has fallen back to where it was trading when Covid-19 began to cripple the US economy.
On Monday, shares of the e-retailer fell 3.4% to $84.92, its lowest close since March 16, 2020.
Amazon has fallen sharply this year amid a broader tech sell-off coupled with rising inflation, a deteriorating economy, and rising interest rates. Tech-heavy for the first time in nearly two decades Nasdaq Composite is seen to lose S&P500 in consecutive years. Trillions of dollars wiped out of tech stocks.
Amazon’s stock has plunged 49% in 2022 and is facing its worst year since the dot-com crash of 2000, when the company lost 80% of its value. Among the highest rated technology companies Meta had the worst year, down 66%, followed by Tesla that 57% and then Amazon.
It’s a market reversal since 2020, when Amazon stock rallied amid unprecedented online demand. Amazon saw a rush of consumer orders at the height of the pandemic, as many avoided visiting physical stores and turned to the internet for essential and non-essential goods.
Last year, the story began to change as e-commerce companies expected harsh year-on-year comparisons and the economy started to reopen, prompting many people to return to physical stores. In early 2022, higher costs related to inflation, supply chain restrictions and the war in Ukraine put further pressure on Amazon and other tech companies.
For Amazon, the challenges run deeper. It’s also grappling with slowing growth in its core retail business, and the company has been forced to decline after its historic expansion during the pandemic.
Amazon back to pre-pandemic levels
CEO Andy Jassy has embarked on a major review of the company’s spending, which has resulted in some programs being shut down and a hiring freeze imposed on the company’s entire workforce. Last month, the company began laying off thousands of employees as part of a wave of job cuts that is expected to extend into next year.
The pain probably won’t go away anytime soon. Amazon spooked investors in October when it forecast sales of between $140 billion and $148 billion for the current quarter, which translates to growth of just 2% to 8%. That was well below analysts’ median forecast of $155.15 billion, according to Refinitiv.
SEE: Amazon CEO Andy Jassy on changing consumer habits