Amazon's stock price plummeted by nearly 50%! Amazon was "frozen" by the cold

According to foreign media reports, Amazon's stock price has lost all the gains driven by the epidemic and has fallen back to pre-epidemic levels. On December 22 , its stock price fell to $83.79, the lowest closing price since March 16, 2020 .

Amazon's stock price has fallen 49 % this year, making it one of the companies with the largest market value losses in the United States .

When the Internet bubble burst in 2000 , Amazon's market value shrank by 80% , and this year Amazon may experience such difficult times again.

In 2020 , the outbreak of the epidemic led to a surge in online shopping demand , and Amazon took advantage of the opportunity. As online transaction volume continued to rise, Amazon's stock price continued to rise and set new highs.

But starting last year, the epidemic began to ease and consumers returned to physical stores. This year, due to inflation, supply chain restrictions and the Russia-Ukraine conflict, most e-commerce companies, including Amazon, have fallen into a difficult operating situation .

Compared with other e-commerce technology companies , Amazon faces greater challenges. On the one hand, the growth of Amazon 's core retail business has slowed down; on the other hand, it has expanded wildly during the epidemic, and now changes in consumer consumption behavior and rising costs have forced it to start scaling back.

Amazon's previous financial report stated that it had laid off nearly 100,000 employees, and recently it announced that it would lay off another 20,000 employees, and said the layoffs would continue until 2023.

Amazon has cut staff and shut down some warehouse construction to solve the problem of overcapacity and reduce cost pressure, but at the same time it is facing the problem of reduced efficiency in e-commerce package delivery.

It is reported that due to the surge in orders during the peak season , Amazon handles approximately 16 million packages every day . In addition, it has to hand over approximately 1 million packages to UPS and USPS to meet users' delivery needs.

Satish Jindel, president of ShipMatrix , said that due to the decline in online shopping demand, the US logistics industry has collectively fallen back to pre-epidemic levels this year. However, the arrival of the peak season has caused Amazon 's two-day delivery service to face severe challenges. In order to increase delivery speed, the company can only transfer packages to other logistics companies.

It seems that there is growth during the peak season, but data shows that the volume of e-commerce packages in the United States has not increased significantly during this holiday season . Merchants' revenue during the peak of Cyber ​​Week only increased by about 4% compared with 2021. Analysts say that the US e-commerce market has shrunk .

For Amazon, the market pain will continue for some time. In October, it predicted that its sales this quarter would be between $140 billion and $148 billion, an increase of only 2% to 8%. JPMorgan Chase and others also said they had lowered their revenue forecasts for Amazon .

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