Good News for Amazon Stock: E-Commerce Is Turning the Corner
Amazon (NASDAQ: AMZN) is one of the best-performing stocks of the last generation, but its 2022 returns are a reminder that past performance isn't a guarantee of future returns. Shares of the tech giant are closing out the year down nearly 50% as it's faced a slew of challenges that have left it looking decidedly vulnerable.
The company is closing warehouses and laying off 10,000 corporate employees. It's shuttering once-promising businesses like Amazon Care and making cuts at Alexa after reports revealed that division is losing $10 billion a year. Additionally, revenue growth has slowed as the company has faced difficult comparisons with the pandemic boom in 2021, macro headwinds, and a shift in consumer spending.
On the bottom line, losses in its non-Amazon Web Services (AWS) segments have widened significantly. The company has even warned of slowing growth at AWS, its cloud infrastructure unit that is by far its biggest profit generator.
Source Fool.com
