Amazon stock is down 50% this year and is at its lowest point in 52 weeks

Shares of Amazon (AMZN) are sucking the wind in 2023 as investors worry about still high costs and what threatens to be a disappointing Christmas shopping season.

Shares of the tech giant are now hovering at a new 52-week low and are down 50.3% year-to-date, according to Yahoo Finance data. The stock competes with terrible performance from its partners in the closely followed FAANG complex (Facebook/Meta, Apple, Amazon, Netflix, Google) as Meta Platforms (META) suffered a 63% drop and Netflix (NFLX) about 53% is down. %.

The stock lost about 12% in December alone, more recently weighed down by a lackluster government retail sales report for November.

“Consistent with our recently released uutlook report for 2023, we are lowering our estimates and our price target on Amazon in the wake of several proprietary data points pointing to continued weakness in demand for online retail and cloud computing,” warned tech analyst EvercoreISI’s Mark Mahaney in a customer note. this week. “We have cut our 2023 and 2024 revenue estimates by 4% and 5%, and our operating income estimates for 2023 and 2024 by 9% and 8% and are now below the street.”

Sentiment on Amazon isn’t helping as its own operating performance comes into peak season.

Amazon announced on Oct. 27 that it had fallen short of analyst estimates for the third quarter as revenue growth continued to cool and costs remained high. For the fourth quarter, Amazon came in at between $140 billion and $144 billion instead of the $155 billion analysts had predicted.

Shares were hammered nearly 10% the next day.

In November, Amazon reportedly began laying off about 10,000 employees in an effort to bring its cost structure under control.

Mahaney’s colleagues on the street also have a cautious short-term view of Amazon.

“We believe Amazon has the most downside in our megacap coverage given its exposure to inflationary cost headwinds and a potential impact from slowing consumption,” Jefferies tech analyst Brent Thill wrote in a note to clients.

Brian Sozzi is editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and further LinkedIn.

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