Amazon stock price prediction 2022

The COVID-19 pandemic affected Amazon’s stock which has undergone a decline.

The sale of stock soared high in 2020 and 2021 equally; due to the COVID-19 pandemic, people shunned physical stores and preferred online shopping.

People flocked to online retailers from buying dumbbells to face masks.

The last time Amazon traded around that level was on Feb. 20, 2020, when the stock reached an intraday high of $2,176.79.

Here are the main metrics from the Amazon news report, compared to consensus estimates compiled by Bloomberg:
amazon stock

Revenue:

$116.4 billion vs. $116.43 billion expected.

Earnings per share:

$7.56 per share vs. $8.40 per share expected

According to Amazon stock news, the company’s latest earnings could not meet the growth it enjoyed during pandemic lockdowns.

amazon stock news

Another challenging situation is shifting market conditions. The out-of-tech stock was rotated at the end of 2021; that was done by the investors due to the spectre of higher interest rates and soaring inflation. 

After the Federal Reserve raised its benchmark interest rate, the sale of stocks has recently accelerated, specifically in the technology sector. 

The tech giant has lost $1 trillion in value between Thursday and Monday.

According to Amazon stock news, a net loss of $3.8 billion for the quarter that ended March 31 is reported, whereas, in the same period of 2021, the company made an $8.1 billion profit.

Definitive gave Amazon a stock prediction of $4.4 billion profit, but Amazon could not even achieve it, rather faced a loss.

Amazon stock price prediction

Amazon’s Stock Price Prediction :

Amazon stock price pre

Amazon’s stock price prediction signifies that there will be slower revenue growth in the next quarter, and growth will be around 3% to 7%.

The cost of overseas shipping is more than double as compared to pre-pandemic days. In the same way, fuel cost is 1.5 times higher than it used to be a year ago.

Amazon stock prediction

 Consequently, Amazon had to hire more staff immediately to compensate for employee absences.

But the company got overstaffed as old employees returned after the variant subsided, that resulted in lower productivity, and the company had to suffer loss.

Bottom Line :

Amazon stock gave profit to the company during the pandemic, and afterward, when the pandemic subsided, Amazon’s stock lost nearly 10% in post-market trading in 2022.

The company is regaining, as the Bank of America states, that Amazon is our ‘top Fang stock’ in 2022, specifically in terms of its strength in cloud computing (AWS-Amazon Web Service).

AWS is the biggest revenue driver for Amazon providing operating income of $4.19 billion from $3.36 billion a year ago, accounting for nearly 60% of Amazon’s total operating income of $7.7 billion.

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