Why AMAZON is COLLAPSING – #stocks chatter




The month of April sees many reputable tech companies experiencing a plummeting stock rate. Among them is Amazon, a large e-commerce outlet which experienced a 14% fall in stock, its biggest one-day percentage drop since July 2006. What is the cause of the sudden terrible drop?

The Amazon owner, Jeff Bezos, has said in an AP report in April 2020, that the company might be losing out on money, advising the investors to hold tight as his company is going through the hardest time they've ever faced. After that, the E-commerce giant's shares plummeted in the first half of 2022 and are down 32% year to date, according to the data provided by the S&P Global Market Intelligence. It reported a loss of $3.84 billion or $7.56 in stake for the first three months of 2022, while in 2021 it reported a profit of $8.1 billion or $15.79 in stake for the first quarter. The losses came after the company released its quarterly results reports which showed slower than expected growth and great uncertainty in the future. Investors responded to the news in a jiffy, making the stock fall at the fastest level in 8 years.

The loss came partly due to the Amazon investment in the startup electric vehicle maker (EV), Rivian Automotive. Amazon has about an 18% share in the EV company and the company also accounts for a $7.6 billion loss in value in its stock investment in the EV company.

Amazon Chief executive Andy Jassy said in regards to the happenings, "The pandemic and subsequent war in Ukraine have brought unusual growth and challenges". He added that the company was also facing increased costs, with ongoing inflationary and supply chain pressure.

Furthermore, Amazon has raised the price of their prime service, which gives subscribers access to benefits like faster shipping for US customers.

The annual prime membership fee has been increased by $20 in the last quarter, a first since 2018. In a bid to offset rising fuel costs and inflation, it has also added a 5 per cent surcharge to fees it charges third-party sellers who use its fulfilment services.

This video goes into more detail: [Why AMAZON is COLLAPSING: The TRUTH About AMAZON - YouTube](https://www.youtube.com/watch?v=rJ-y8mqvzok)

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