October Was Amazon Stock’s Worst Month Since 2008
Following on from a weak Q3 report, Amazon stock drops to record lows.
Amazon is soon expected to announce the locations of the new second headquarters. There is speculation that the second headquarters will be in Long Island City, Queens.
Despite Amazon’s recent stock price declines, many analysts believe the stock will reach the $1 trillion dollar market cap. The last time that Amazon stock reached the $1 trillion dollar market cap level was back in September before reporting a weak holiday sales forecast. The company has a current market cap of $837.32 billion, with 566,000 employees worldwide.
Amazon Stock Analysis
For Amazon, October was not an easy month by any stretch. AMZN stock price fell a whopping 20.2% in October, which is the worst month for the company since November 2008, where it dropped 25.4%. October 31, Amazon ended the month at $1,598.01 per share.
Since Amazon stock has been public, October 2018 is on record as being the company’s thirteenth worst month. The fall in stock price was attributed to Q3 earnings that showed Amazon’s businesses were slowing. In Q3 2018, Amazon Prime,Amazon Web Services and other subscriptions all slowed.
Amazon share price is up for the year, but down 15% from its record peaks.
Competing retailers are increasing pressure for Amazon in terms of convenience. Sam’s Club, owned by Walmart, intends to open an Amazon-Go competitor in Dallas, Texas.This location from Sam’s Club will allow customers to skip queues by paying through the stores app.
For Jeff Bezos, these sell-off’s have been especially challenging. Bezos (Amazon CEO) lost $19.2 billion in two consecutive days of trading (metrics from Bloomberg). For the month on October, Bezos’s net worth was slashed by $30 billion. With a net worth of $165 billion, Bezos is the richest person in the world with Bill Gates in second place (net worth: $93.4 billion).
Amazon stock has been one of investors favorites for years, with the company something of an infatuation for Wall Street.
Amazon Stock Prediction
Our analysts have an Amazon stock price target of $2,130 in the next 12 months.
City Of Hype analysts give Amazon stock a “BUY” rating currently.