1 Green Flag For Amazon in 2023, and 1 Red Flag
Amazon (NASDAQ: AMZN) has rallied investors this month after promising quarterly results, with its stock up 6% since Aug. 1. After being one of the hardest-hit companies amid an economic downturn over the last year, the retail giant appears to be making a solid recovery. Meanwhile, its growing position in artificial intelligence (AI) could provide significant gains over the long term.
However, before you go all in on Amazon stock, it's important to understand the positives and potential negatives of its business. So, here's one green flag and one red flag for Amazon in 2023.
Last year's macroeconomic headwinds caused steep declines in Amazon's retail business, with its e-commerce segments reporting operating losses totaling $10.6 billion in fiscal 2022. However, easing inflation and restructuring is paying off for the company. Moves such as closing or canceling construction on dozens of warehouses, layoffs, and shuttering some of its less profitable businesses reflected positively on earnings.
Source Fool.com
