Why Amazon Shares Fell 12% in June
Shares of Amazon (NASDAQ: AMZN) fell 11.7% in June 2022, according to data from S&P Global Market Intelligence. The e-commerce and cloud computing giant largely followed the negative trend of the overall stock market, with a couple of Amazon-specific events along the way.
The long-awaited 20-for-1 stock split took place on June 6. The event didn't exactly ignite a massive market surge, as Amazon shares posted a gain of 2% that day. Twenty-four hours later, that modest price gain was lost like dust in the wind, underscoring that stock splits usually don't achieve anything substantial. You're just cutting up the same investment into a different number of slices thanks to the rising availability of fractional share trades,
The stock gained more than 5% two weeks later, boosted by a bullish report from analyst firm JPMorgan Chase. Veteran analyst Doug Anmuth thoroughly examined Amazon's Prime loyalty program and found some inspiring results. The e-commerce industry is headed into rough waters in the near term, but Anmuth expects a solid rebound near the end of the year. According to the analyst, the Prime package is a fantastic deal for subscribers with an annual value of roughly $1,100 but a subscription fee of just $139. Therefore, Amazon should be able to raise prices on Prime memberships without scaring away subscribers.
Source Fool.com
