Amazon (NASDAQ: AMZN) looks like it's back in action after several quarters of sluggish growth and its first annual loss in a decade in 2022. It's a perennial investor favorite, and there's good reason to be confident about its future.

But no company is infallible, and Amazon has its fair share of ongoing struggles. When investing, you need to take off your rose-colored glasses and get full-on into any murkiness to make informed decisions. So without discounting any of the green flags, it'd be prudent to watch out for the following three red flags that could sink the stock.

The trajectory of e-commerce as an industry has fluctuated over the past few years, stemming primarily from reactions to the COVID-19 pandemic. After quickly moving online, consumers scaled back digital purchases when stores reopened. They're now moving to a new era of omnichannel shopping, where digital plays a bigger role in a life that still involves brick and mortar.

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Source Fool.com