Amazon's stock sees worst month since the global financial crisis
Amazon’s stock tumbled 20.2% over the month of October, the company’s 13th worst month on record and its worst since the 2008 global financial crisis.
Things could have been worse but for a small 4.4% bump in trading today, but the company’s stock price fell from US $2,004.36/share on October 1 to $1,598.01/share at market close today. This is the worst tumble the online retailer has seen in its share price since October 2008, when stock fell by 21.3%. Keep in mind that the world was deep in the throws of a financial meltdown 10 years ago.
Analysts are pointing the finger at Amazon’s third-quarter earnings, released on October 25th. In its financial report, Amazon said that key businesses like Amazon Prime, Amazon Web Services, and the Amazon.com retail site itself were all slowing.
Competitors are also partly to blame; the likes of Sam’s Club, which is owned by Amazon’s main rival Walmart, looks to be copying Amazon’s Go store model in Dallas, Texas. The new Sam’s Club will allow customers to pay using an app on their smartphone and walk out of the store without waiting in line.
As Quartz reports, the biggest loser this month was Jeff Bezos himself. On top of losing $19.2 billion in his own personal wealth from October 25th to market open on October 29, the wealthiest man in the world lost a total of $30 billion this month. Still, considering Bezos is worth over $150 billion, I think he’ll be able to eat this month.