Amazon's growth challenges and regulatory pressures
$Amazon (AMZN.US)$ Its stock price has recently been underperforming, sparking widespread discussions about its future. In particular, the slowdown in the growth of e-commerce, which experienced explosive growth during the pandemic, is a major concern and dampening future market expectations. Furthermore, regulatory pressure from authorities has been increasing, with US and European regulators closely scrutinizing Amazon's business model. However, supporters of Amazon believe that the company's core strengths remain strong. AWS (Amazon Web Services) continues to be a major profit driver and maintains a dominant position globally. Additionally, the expansion of Amazon's logistics network and the increase in advertising revenue demonstrate the company's diversified business capabilities, further bolstering long-term investor optimism.
Data analysis:
1. Stock performance: Amazon's stock price declined by about 15% in 2024 and is currently trading around $1,200.
2. Financial data: In the second quarter of 2024, the growth of e-commerce revenue slowed to 5%, but AWS revenue continued to grow steadily at 25%.
3. Regulatory issues: Increased scrutiny from regulatory authorities, particularly investigations into antitrust violations in the US and Europe, could have a significant impact on the company.
Future outlook
Bearish scenario: If the growth of e-commerce continues to slow down and regulatory pressure intensifies, Amazon may face profitability issues. Particularly, if there are concerns about the company's future growth outlook, the stock price may further decline.
Bullish scenario: If Amazon expands its AWS business and manages to increase advertising revenue while addressing regulatory challenges, there is a potential for gradual recovery in the stock price. Effectively managing regulatory issues may mitigate the impact on the business.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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