Should Investors Pounce On Amazon Stock During the Nasdaq Tech Sell-Off?
E-commerce stocks aren't getting much love these days. The ProShares Online Retail ETF is down 59% from highs set in February 2021. E-commerce giant Amazon (NASDAQ: AMZN) has done better a bit better but still has seen its stock price drop into correction territory. Shares of the tech giant are down 24.5% from all-time highs set last summer. Compare that with the 20.3% drop in the tech-focused Nasdaq-100, and you'll see that investors are wary of tech growth stocks and the e-commerce sector specifically.
After e-commerce blossomed at the start of the pandemic, a reopening economy has brought more consumers back into brick-and-mortar stores, putting pressure on online shopping platforms. And while Amazon has diversified its business over the years through categories like Amazon Web Services (AWS), Amazon Prime, and digital advertising, the company's top line is still largely dominated by online retail.
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Source Fool.com
