Amazon Stock Price: Is AMZN Poised for a Comeback?

Ostersund, Sweden -August 9, 2015: Amazon website displayed on a computer screen. Amazon is an american international electronic commerce company and the world's largest online retailer.

For the past month, we have started to see Amazon stock coming to life again. However, the company is still down by 45 per cent year-to-date,  losing over $1 trillion of its market capitalization during that time. 

Why is Amazon losing in the Markets?

A number of factors have impacted Amazon’s continued growth in the market, among them the current macro scenarios such as the rising cost of living that has seen most of its customers cutting down on their spending. The company has also been plagued by overstaffing problems, with the company expected to lay off more than 20,000 of its staff in the next few months. 

The company’s 45 per cent year-to-date drop has also been compounded by the recent protests by many warehouse workers demanding higher pay and better working conditions. For instance, the recent protests in several countries on Black Friday, one of the busiest shopping days in a calendar year, saw the company losing millions in expected profits, if not billions, which is likely to impact its growth in the coming. 

Is Amazon a Good Investment?

However, despite this, most investors are still optimistic about the company.  The company’s AWS operations continue to grow and provide the much-needed cash flows for its other failing ventures, such as Alexa. Therefore, despite the company’s cash burn, there is a high likelihood that we might continue to see growth. 

Most investors are still bullish on the stock despite lowering their price targets after the company missed its Q3 2022 earnings. Overall, the Wall Street Sentiment is overwhelmingly bullish, and its current problems are also being felt by other big companies. 

Therefore, my Amazon stock analysis remains bullish, despite the past two trading sessions being aggressively bearish. There is a high likelihood that we might see Amazon’s stock price returning above the $100 price level in the coming sessions. However, a trade below $90 will invalidate my bullish analysis.

Amazon Daily Chart