Amazon has been one of the biggest players in the world of retail for some time now. With its expansive e-commerce empire and massive cloud computing platform, Amazon has become a juggernaut of the digital age.Yahoo Finance data shows the stock is close to a 52-week low and down 50.3% year-to-date. The stock soared in 2020 and held up in 2021 as shoppers flocked to the e-retailer.. But as Amazon’s stock price falls, investors are starting to question whether or not this company is truly worth all the hype. In this blog post, we will explore five reasons why is amazon stock falling and what this means for you as an investor.
Amazon’s Stock Is Falling because of Competition
1. Stock is falling because of competition
In the past year, there has been a lot of competition in the e-commerce space. This includes retailers such as Walmart and Target who are now starting to offer their own versions of Amazon’s popular products. Additionally, Facebook has been building out its own shopping platform, and Google is also getting into the game with its Shopping service.
2. The Competition Is Getting Serious
All of this competition is causing Amazon’s stock to fall. For example, inQ2 2019, Amazon’s revenue grew by 31% compared to the same quarter last year, but its share price fell by 5%. This shows that investors believe that there is still room for other companies to grow and overtake Amazon.
3. Facebook Has Been Doing Well Recently
Facebook has been doing well recently because it continues to expand its reach into new markets. In addition, it has been investing heavily in AI and machine learning which allows it to better compete with other e-commerce platforms. Facebook’s share price has also been rising, indicating that investors are confident in its long-term potential.
Amazon’s Stock is Falling because of the US-China Trade War
Since the start of the US-China trade war, Amazon’s stock has fallen by around 10%. The main reasons for this decline are:
1) The US-China trade war is reducing demand for Chinese goods in the US. This is already causing some Chinese companies to see their revenues decline.
2) American companies are boycotting Chinese products, which is hurting sales for Chinese suppliers too.
3) The Trump administration has put tariffs on a number of Chinese goods, which has made them more expensive and less desirable to buy.
4) There’s been a lot of talk about how Amazon could be impacted by the trade war; many investors are worried that this could have a negative impact on its business.
Amazon’s Stock is Falling because of the Unsustainable Debt Levels
Amazon is facing many challenges. The company’s stock price has been falling for months, and it may not be able to keep up with the competition. Here are five reasons Amazon’s stock is falling:
1. The Unsustainable Debt Levels
One of the biggest problems facing Amazon is its debt levels. The company has been borrowing money to finance its operations, but this may not be sustainable in the long term. Amazon has been increasing its borrowings each year, and it now owes $136 billion dollars. This means that if interest rates were to increase, Amazon would have a lot of difficulty paying back its debts.
2. The Competition from Retailers like Walmart and Target
Another reason why Amazon’s stock is falling is because of the competition from retailers like Walmart and Target. These companies are investing in e-commerce infrastructure, which makes it difficult for Amazon to compete on price. In addition, these retailers are also investing in new delivery technologies, which could make it difficult for Amazon to keep up with the competition.
3. The Decline of the Prime Membership Base
Another issue affecting Amazon’s stock is the decline of the Prime Membership base. Prime membership is a premium service that costs $99 per year, but it has been declining in popularity recently due to other options available online. It seems that fewer people are willing to pay such a high price just for shipping benefits alone.
4. Reduced Sales Due to Low Oil Prices
Low prices of oil in international market is a big problem for international trading.Every day changing in oil price is not good for international market.The price of goods are not stable.Every country face a nagative impact in different situations.
Amazon’s Stock is Falling because of Brexit
1. Amazon’s stock is falling because of Brexit
2. The company’s sales in the UK have been declining since the referendum
3. This has led to a decrease in the value of its shares
4. There are also concerns about Amazon’s dominance in the ecommerce market
5. These factors have caused Amazon’s stock to fall by around 8% since the referendum
6. However, there are still reasons to be optimistic about Amazon’s future
Amazon’s Stock is Falling because of Tax Changes in the US
1. On December 22nd, 2017, the US Congress passed a bill called the Tax Cuts and Jobs Act (TCJA). This bill includes major changes to the US tax system that are expected to significantly reduce Amazon’s federal tax bill.
2. The TCJA is bad news for Amazon because it:
– reduces the corporate income tax rate from 35% to 21%, which should lowers Amazon’s taxable income by about $5 billion annually;
– repeals the Obamacare medical insurance surcharge, which was designed to increase Amazon’s taxes; and
– increases the Medicare payroll tax from 2.9% to 3.8%, which will increase Amazon’s taxes by an additional $500 million annually.
3. All of these changes are expected to add up to a $20 billion decrease in Amazon’s after-tax net income over the next ten years (assuming no other changes occur).
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