NEWS

Amazon was the worst-performing FAANG stock of 2021

Amazon shares finished 2021 as the biggest laggard among the mega-cap technology names, but there’s reason to believe 2022 could be a brighter year for the stock.

Shares of Amazon rose a measly 2.4% in 2021, vastly underperforming the four other so-called FAANG stocks. Apple gained 34%, Meta Platforms (formerly Facebook) saw its shares rise 23%, Netflix increased 11% and Alphabet, the year’s top tech stock, climbed 65%.

At the same time, fellow tech giant Microsoft was up 51% for the year and the tech-heavy Nasdaq Composite gained 21%.

The last time Amazon delivered such lousy returns for investors was 2014 when the stock slumped 22%.

Several factors lie behind Amazon’s poor stock performance last year, according to analysts.

Amazon, like other e-commerce companies, faced tough year-over-year comparisons to 2020, when the coronavirus pandemic led to a surge in online orders. 

 In the second quarter of 2021, Amazon’s revenue grew by 27%, which was a significant slowdown from the year-ago period, when sales skyrocketed 41%.

Amazon underperformed expectations in its last two earnings reports, which also weighed on the stock, said Tom Forte, senior research analyst at D.A. Davidson, in an interview. 

The post Amazon was the worst-performing FAANG stock of 2021 appeared first on The Khaama Press News Agency.



Source: The Khaama Press News Agency

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