Amazon’s stock closed down Tuesday for a fifth straight day, falling to the lowest since April 2020.
Last week the company projected sales in the holiday quarter would be far below expectations causing the stock to drop 5.9% to $96.79.
Amazon has been the second-worst performer in the Big Tech group this year, behind Facebook parent Meta, which has plummeted 72%. Meta told investors last week that revenue in the fourth quarter would likely decline for a third straight period.
So what could rescue the stock ?
Amazon’s cloud services revenues does most of the heaving lifting compared to its marketplace business. Amazon’s operating profit mainly comes from Amazon Web Services (AWS). So can increase in Amazon prime membership numbers help boost the stock ? Well, now there is one more reason to join amazon prime. Amazon Prime members can now get access to the entire Amazon Music catalog, about 100 million songs, to play in shuffle mode. That service used to only contain 2 million songs. They’re also removing ads from a large selection of podcasts including the entire Wondery catalog if you’re a Prime member.
Some of the other stocks moving after market closed today include:
- Advanced Micro Devices Inc (NASDAQ:AMD) reported third-quarter revenue of $5.565 billion, up 29% year-over-year
- Alphabet Inc (NASDAQ:GOOGL) closed over 4% lower on Tuesday amid general market weakness.