The S&P 500 is down by about 19% since Jan. 3, 2022, which puts it practically in bear market territory. But shares of Amazon (NASDAQ: AMZN) have fared far worse: They've dropped by 49% since then, and are now down 54% from their all-time high.

Explaining why such a complex company has suffered that sort of decline seems daunting. And yet, I believe looking at the company's operating income provides a simple explanation. And having understood this issue, the question of what Amazon's prospects look like in 2023 is more easily answered.

Amazon is the largest e-commerce player in the U.S., it has an enormous logistics network, it has international operations, and operates a powerful cloud-computing platform, Amazon Web Services (AWS).

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Source Fool.com