Amazon‘S (NASDAQ: AMZN) Stock performance was unusually flat in 2021 after having a monster year in 2020. However, that doesn’t mean there aren’t many exciting opportunities for this stock as we enter 2022.
After rising 76% in 2020, it’s actually not all that surprising that Amazon’s stock performance could decline in 2021. The pandemic resulted in many of its profits being pulled forward and management knew it had to make lukewarm forecasts. There were also some other issues that Amazon was addressing (details below) that made stock traders suspicious, with Amazon only gaining 2.4% in 2021. That doesn’t mean the long-term bull case for Amazon has derailed, however.
Short-term obstacles forced Amazon to adapt
Amazon’s earnings in 2021 were significantly impacted by several macroeconomic conditions, particularly in its e-commerce segments. First, the tight labor market in the US pushed wages up …