Why Amazon Is Down 27% This Year
Amazon (NASDAQ: AMZN) has rewarded investors over time. The company has increased profit, revenue, and free cash flow over most of the past decade. As a result, the shares climbed more than 1,000% through early this year.
But Amazon's share performance hasn't been as bright this year. The shares have lost 27% so far, underperforming the S&P 500 Index. This isn't catastrophic when you consider Amazon's long-term gains. But it still isn't much fun for those investors who bought Amazon shares more recently. Let's take a look at why Amazon is in the doldrums this year -- and what this means for you.
Amazon operates in two high-growth industries: E-commerce and cloud computing. In fact, it's a leader in both of these areas. Over the past year, various elements have been weighing on the e-commerce business. Higher inflation has increased Amazon's transport and logistics costs, for example. Supply chain difficulties have been another problem.
Source Fool.com
