Amazon’s stock has taken a nosedive unlike any in the past several years. Year to date, it is down 34%.
The cause of this is that its huge e-commerce business has been crippled by high costs. It has continued to keep labor costs down, and some would say this is at the expense of low-paid workers. It also overbuilt its distribution system, in particular its warehouse network.
Lost, to some extent, is that Amazon continues to be the global leader in cloud computing. It remains one of the foundations of global tech sales growth. The industry has become crowded with start-ups. Yet, these seem to have taken business from one another and weak players like IBM. Amazon and Microsoft continue to have the best market shares.
Amazon will close many of its warehouses and right-size its e-commerce business. The company has a reputation of nimbleness, and that has not been dented. Margins on e-commerces sales should be back to normal levels by the holiday season. Amazon’s shares have sold off too much.
Click here to see which were the most innovative companies last year.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
