Paul Harris discusses Amazon
Amazon.com Inc. shares fell on Tuesday, with the e-commerce and cloud-computing company closing below US$1 trillion in market value for the first time since the early days of the Covid-19 pandemic more than two years ago.
The stock fell 5.5 per cent to end at US$96.79, representing a market capitalization of US$987.4 billion. Shares closed at their lowest level since April 2020, and have dropped 42 per cent this year. At its Nov. 18 peak, Amazon boasted a market cap of nearly US$1.9 trillion.
It was the fifth straight negative session for Amazon -- down about 20 per cent over the period. Meanwhile, the Nasdaq 100 Index fell 1 per cent on Tuesday.
Recent weakness was spurred by the Seattle company’s earnings report last week, when it projected the slowest holiday-quarter growth in its history. Amazon, which had posted record profits during the pandemic, said sales would increase by only 2 per cent to 8 per cent during what has traditionally been its peak season.
Amazon, along with most other major technology and internet stocks, has been pressured throughout 2022 by concerns over slowing growth and rising interest rates. The economic uncertainty has weighed on the multiples of high-valuation stocks.