A slowdown in growth, pressure on profitability from additional costs and weak forecasts erased billions from Amazons (NASDAQ:AMZN) market capitalization.
It’s worth noting that AMZN’s net revenue growth slowed to 7% in Q1 2022 from 9% in Q4 2021. Additionally, Amazon expects sales to grow 3-7% in the second quarter, indicating further deceleration. Management blamed the normalization of demand trends amid economic reopening, higher transportation and production costs, and the pandemic for the slowdown in sales growth and additional costs.
AMZN stock closed over 14% lower on Friday after weak Q1 performance and guidance. It has now lost more than 25% of its value this year. Could Amazon stock have seen a pullback, could this be an opportunity to invest?
Unsurprisingly, Wall Street analysts lowered their price targets and estimates for AMZN to reflect the slowdown. However, their attitude has not changed. Of the 40 analysts…