Top-7 Anti-crisis Stocks at Wall Street: Amazon
The giant E-commerce platform and cloud-computing service just announced a 20-for-1 split of its stock price on March 9. The market price of Amazon immediately jumped by almost 7.5% for the two following days, as this split decision may additionally attract a lot of small private investors. The cost of about $3,000 per share was too expensive for most of them, binding too much money in lightweight portfolios. Buying Amazon shares was way above the budget of most ordinary people, and this obstacle will be eliminated when the entering price for Amazon shares will be 20 times less.
Amazon was one of a few global companies, which substantially improved its position worldwide when more people started to order goods online in the corona era. Yet, many consumers kept their recently acquired habit of online shopping, despite sitting-at-home restrictions gone away. For now, it is trading at almost a 25% discount compared to its November 2021 peak price, as the market digested the slowdown in total sales growth step by step as the pandemic boom faded. Higher costs fuelled by inflation and declining free cash flow from operations also contributed to this effect. However, most of Amazon's correction path, along with the broader market, may be left behind. A $10 billion share buyback program authorised by Amazon owners is probably confirming their long-term global ambitions, since they do not want to miss out on profits by increasing their part in business. News that Amazon could be days away from closing its deal to buy MGM, the fabled studio behind "Rocky" and "James Bond," may also be an upside driver soon. If Amazon wins the deal, then Amazon Prime Video could collect more resources in competition with its streaming rivals Netflix and Disney+.