Amazon stocks hit a 52-week low on Tuesday, with the company’s share value down 50.3% for the year to date. This comes as the company is pressured by the release of a poor government retail sales report for November.
“Consistent with our recently published 2023 outlook report, we are lowering our estimates and price target on Amazon in the wake of several proprietary data points that suggest ongoing softness in online retail and cloud computing demand,” EvercoreISI tech analyst Mark Mahaney stated, thereby expressing the company’s waning confidence in the e-commerce giant.
Plummeting by approximately 12% in December alone, Amazon missed analysts’ third-quarter estimates. As a result of the company’s recent dip in performance, analysts have adjusted their fourth-quarter estimates from $155 billion to a range of $140 billion to $144 billion.
in response to the recent downtrend in performance, Amazon took the decision to lay off around 10,000 employees in November. The company did so in an effort to stabilize its spending.
The company will hope that the holiday season will boost its earning potential.