2 Reasons to Buy Amazon After the Recent Split, 1 Reason to Sell
Amazon (NASDAQ: AMZN) has proven it can reward investors over time. Shares of the retail giant gained more than 800% over the past decade -- and last year they topped $3,000. That's as the company's revenue and profit climbed into the billions of dollars. And key metrics like free cash flow and return on invested capital rose over time.
Since the beginning of the year, though, Amazon's share performance has stumbled. The stock has lost about 37%. That's as problems like rising inflation and supply chain challenges have hurt earnings. Even Amazon's recent stock split failed to offer the shares a boost. Considering all of this, what's an investor to do? Before deciding, let's look at two reasons to buy Amazon right now -- and one reason to sell.
E-commerce is growing. And Amazon is well positioned to benefit. In the U.S. alone, e-commerce may reach more than $1 trillion in sales this year, according to Insider Intelligence's predictions. And Amazon represents about 40% of U.S. e-commerce sales, Insider Intelligence's data show.
Source Fool.com
