In 2020, business was booming for e-commerce companies due to the pandemic and related government-imposed lockdown measures. It is with this momentum that Amazon (NASDAQ: AMZN), one of the biggest players in the industry, kicked off 2021. However, the tech giant underperformed the market over the past year and several factors likely contributed to Amazon’s underperformance in 2021.
First, investors have largely turned their backs on so-called “pandemic stocks,” and many of these companies have had a terrible year as a result. Second, legendary Amazon founder Jeff Bezos stepped down from his role as the company’s CEO in the third quarter, leaving his deputy Andy Jassy in charge. Will these factors continue to weigh on Amazon’s stock performance, or can the company return to its market-leading form?
Amazon shares are currently trading at $3,251.08 a share. Let’s see if the company’s shares can climb about 23% this year and hit the $4,000 mark.