Amazon stock performed poorly in 2021, rising only 2.4%!

As a giant in cross-border e-commerce, Amazon's stock price is also a focus of attention in addition to its financial reports.

According to the latest news, at the end of 2021 , Amazon stock became the biggest laggard among several major technology stocks. Many Amazon "fans" naturally do not buy it. They believe that this will not affect Amazon's development in the new year and it is bound to catch up.

Data shows that Amazon's stock price has only risen by 2.4% in 2021 , far behind the other four so-called FAANG stocks. Several major technology giants Apple , Meta Platforms (formerly Facebook) , Netflix , and Alphabet have risen by 34% , 23% , 11% , and 65%, respectively . Compared with the above figures, Amazon is obviously slightly inferior.

Foreign media reported that the last time Amazon brought such a bad return to investors was in 2014, when the stock fell 22%.

Analysts have explained why Amazon's stock has underperformed in 2021. Analysts say that like other e-commerce companies, Amazon is facing the same difficulties compared to 2020 , as the pandemic has led to a surge in online orders. To avoid exposure to the virus, consumers have reduced trips to physical stores and flocked to online shopping for everything from toilet paper and masks to office furniture and dumbbells.

The shift to online shopping has boosted sales at Amazon, eBay, Etsy, Wayfair and others, benefiting their growth rates and boosting their stock prices.

Amazon's profits tripled year-over-year starting in the second quarter of 2020. But by the spring of 2021, as more Americans were vaccinated against the coronavirus , consumers began returning to physical stores and shifting some of their spending to things like travel and dining out .

Although online shopping remained strong at the time, Amazon's year-over-year growth rate had begun to weaken. In the second quarter of 2021, Amazon's revenue increased 27% year-over-year, a slowdown from 2020. In addition, Amazon 's earnings performance in the first two quarters was lower than expected, and it was also under pressure from global supply chain constraints and labor shortages , which also put pressure on the stock.

Although Amazon's stock price performance has not been as significant as other technology stocks in the past year, analysts say Amazon's stock price is still optimistic in the new year.

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