Amazon‘S (NASDAQ: AMZN) Bearing looks like a coiled spring.
Pandemic gains drove the online retail giant’s share price up 76% in 2020. Then its stock hit the bottom last year, largely due to exaggerated fears that growth might slow. Now Amazon seems ready again to hit new highs. Here’s why.
1. The online retail market continues to expand
According to Statista, e-commerce sales account for about 13% of total retail sales in the US, up from less than 5% in 2010.
This graph shows that online sales peaked in Q2 2020 at nearly 16% of total retail sales. This coincided with strict social distancing measures in the early stages of the pandemic, which forced many retailers to close their stores. That number has since fallen by about 3 percentage points as the economy reopened and people started shopping in stores more frequently.