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Amazon Suffers Worst Trading Week In Over 3 Years

Amazon saw its shares tumble last week in its worst performance since December 2018, but is it time for investors to start worrying?

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.

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