Is Amazon Stock Recession-Proof?
Amazon's (NASDAQ: AMZN) accomplishments in retailing and cloud computing have made it one of the most successful consumer discretionary stocks in history. At a market cap approaching $1.6 trillion, it lags behind only Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) in this financial measure.
Of course, the economy has changed significantly since the COVID-19 pandemic began. The mass shutdowns led to a 33% contraction in the gross domestic product in the second quarter. Such downturns often lead to a significant loss in business for retailers such as Amazon.
Nonetheless, Amazon stock continues to log new record highs. Amazon may offer some measure of recession resistance. Still, examining whether one should call the company "recession-proof" involves looking at how much influence the pandemic has actually wielded over the company's performance.
Source Fool.com
