Amazon shares have lost nearly all of its earnings since the pandemic

Andy Jassy, ​​CEO of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, USA on Tuesday, Oct. 18, 5, 2021.

David Ryder | Bloomberg | Getty Images

Actions of Amazon they have now given up on nearly all of their earnings from the pandemic.

If the stock falls to $ 2,170 each, slightly below where it closed on Monday night, it will have given up on all the massive stock market gains it enjoyed since the start of the Covid-19 pandemic in 2020. Last time around Amazon traded around that level was on February 20, 2020, when the stock hit an intraday high of $ 2,176.79.

The shares picked up slightly after the markets opened on Tuesday, rising more than 2% to around $ 2,230 each, which is roughly where they were trading just as the stock began to skyrocket in the year. ‘April 2020 when people started shopping more online during the Covid lockdowns. That’s more than 40% off the company’s 52-week intraday high of $ 3,773.08, which it hit on July 13, 2021.

Amazon’s stock skyrocketed in 2020 and 2021 with the boom in e-commerce, with consumers flocking to online retailers for everything from face masks and Lysol wipes to patio furniture and dumbbells. Amazon and other digital retailers now face increasing pressure to prove they can sustain the high-flying growth they enjoyed during the pandemic as the economy reopens and consumers return to brick-and-mortar stores.

Amazon’s latest earnings report did little to alleviate these concerns. The company published its slower revenue growth since the dot-com crash and provided prospects for the current quarter that fell short of Wall Street estimates.

Changing market conditions added another challenge. Late last year, investors began moving away from tech stocks, driven by rising inflation and the specter of higher interest rates. This trend accelerated this year after Russia invaded Ukraine in February, causing oil prices to rise further. The shares were further sold in the last few days after the Federal Reserve raised the benchmark interest rate on Wednesday.

The sell-off particularly hit the tech sector, with tech giants losing more than $ 1 trillion in value between Thursday and Monday.

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