Down 33% in 2022, Can This Unstoppable Growth Stock Make a Comeback in 2023?
Charles Dickens could have been describing Prologis' (NYSE: PLD) year when he penned that "it was the best of times, it was the worst of times." That's because, on the one hand, the warehouse operator is enjoying a record year. Demand for warehouse space has been nearly insatiable, causing rental rates to skyrocket and vacancies to plummet. However, it was the worst of times for investors, given that the stock lost a third of its value.
Here's a look at why the stock lost so much ground this year and whether it can rebound in 2023.
Prologis stock started its nosedive in late April. The culprit was Amazon's (NASDAQ: AMZN) first-quarter report, where the e-commerce giant proclaimed that it had more warehouse space than it needed. The company had overexpanded during the pandemic, growing its warehouse footprint by about 50%. With demand starting to slow, it had too much capacity. Now the company has started shedding some of its excess warehouse space.
Source Fool.com
