Last week saw the Nasdaq suffer its worst weekly drop since the beginning of the pandemic. Inflationary pressure and impending interest hikes already had tech stocks scrambling, but bad news from former stay-at-home darlings Peloton and Netflix only worsened the fall.
Nobody was safe. Not even giants like Amazon (NASDAQ: AMZN).
Amazon’s woeful week
Not wanting to be outdone, Amazon posted its worst single week since late December 2018. Its shares fell 12% for the week, showing that even cornerstone stocks aren’t safe in such a turbulent time.
With more tech earnings slated for this week, Amazon will be hoping that some of its major competitors can help calm the market. The firm is not reporting its own earnings until early February, but its immediate fortunes might depend on the performance of other big-tech stocks.
It’s not all doom and gloom for Amazon, however. The company has navigated the pandemic and the seemingly unending global supply chain issues quite well. As these headwinds ease, Amazon could be set to return to previous heights.
The company continues to innovate and grow, launching Amazon Pharmacy last year and detailing plans for Amazon Style — a brick and mortar clothing store — only last week. It has invested heavily into media by expanding its live sports offerings and its catalog of content for Prime users.
We always recommend the long game when it comes to buying stocks. Yes, Amazon may be down and the wider volatility is far from over, but the underlying company hasn’t changed. It has returned over 240% in the past five years, despite some notable downturns, and there’s every chance it could do the same over the next five years.
Financial Writer at MyWallSt
Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world's leading sports brand.