There's no denying that 2022 has not been a great year for Amazon (NASDAQ: AMZN) stock. It's easy to look at a chart, see that the stock is down over 40% year to date, and begin to panic.

Understanding why the stock has cratered is a bit more complex, though. At its core, Amazon can be thought of as two businesses: E-commerce and cloud computing. While the company has made a number of strategic investments in advertising, gaming, and media, the e-commerce and cloud segments are, by far, its largest operations.    

Given the lingering effects inflation has on consumer purchasing power, coupled with fears of recession and corporations adjusting budgets, both the e-commerce business and the cloud segment for Amazon have been beaten down.

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Source Fool.com