Amazon’s stock fell 12% during the week after pressure from selling technical shares within the broader market, which recorded the worst weekly performance for the retail company’s stock in 4 years, specifically since December 21 of 2018, when the stock collapsed by 13.4%.
Markets fell as investors grappled with the prospect of a rate hike and the company posting mixed results, with the Nasdaq Composite down 1.9%, the S&P500 down 1.3% and the Dow Jones Industrial Average down 1.3%.
Investors are increasingly concerned about the Federal Reserve raising interest rates several times this year in order to counter high inflation, and the disappointing expectations of Netflix’s subscriber numbers added to investors’ fears, which sent the streaming entertainment company’s stock down 22% yesterday.
Netflix was the first large technology company to publish its quarterly results, and Apple, Microsoft and Tesla are preparing to announce their financial results next week, and it is expected that Amazon will publish its fourth quarter results on February 3.
The Amazon stock was one of the booming stocks during the pandemic, but despite its collapse during the recent period, it is expected to return to volatility during 2022, especially after the recent steps taken by the company to enter new markets. Read more [Amazon Opens a Clothing Store on the Ground].
There are other reasons to be optimistic about Amazon. Although the company’s entertainment and retail offerings, which include Prime Video and Kindle, are considered local businesses, Amazon’s real strength lies in its web services project, which analysts believe is worth $1 trillion.