Amazon CEO Andy Jassy speaks during the GeekWire Summit on October 5, 2021 in Seattle.
David Ryder |: Bloomberg |: Getty Images:
Amazon:The stock price has lost all of its gains due to the pandemic, falling back to where it was trading when Covid-19 began to shut down the US economy.
Shares of the e-tailer fell 3.4% to $84.92 on Monday, the lowest close since March 16, 2020.
Amazon has fallen sharply this year amid a broader sell-off in technology that has been linked to rising inflation, a worsening economy and rising interest rates. Tech-heavy for the first time in nearly two decades Nasdaq Composite: is going to lose S&P 500: in consecutive years. Trillions of dollars have been wiped out of tech stocks.
Amazon shares have fallen 49% in 2022 and are on track for their worst year since the dot-com crash of 2000, when the company lost 80% of its value. Among the most valuable technology companies. Meta: had its worst year, down 66%, followed by Tesla 57% and then to Amazon.
That’s a marked reversal from 2020, when Amazon shares soared amid unprecedented online demand. Amazon saw a rush of orders from consumers at the height of the pandemic, as many avoided trips to physical stores and turned to the Internet for essential and non-essential items.
Last year, the narrative began to change as e-commerce companies posted tough year-over-year comparisons and the economy began to reopen, prompting many people to return to brick-and-mortar stores. In early 2022, higher costs related to inflation, supply chain constraints and the war in Ukraine put additional pressure on Amazon and other tech companies.
For Amazon, the challenges run deeper. It is also struggling with slowing growth in its core retail business, and the company has been forced to hold back on its historic expansion during the pandemic.
Amazon is back to pre-pandemic levels
CEO Andy Jassy has undertaken a sweeping review of the company’s spending, which has resulted in the closure of some programs and a hiring freeze in its corporate workforce. Last month, the company began laying off thousands of employees as part of a wave of job cuts that is expected to extend into next year.
The pain probably won’t stop anytime soon. Amazon excited investors in October when it forecast sales of $140 billion to $148 billion for the current quarter, representing growth of just 2 to 8 percent. That was well below analysts’ average forecast of $155.15 billion, according to Refinitiv.
WATCH: Amazon CEO Andy Jassy on changing consumer spending habits