Amazon's sales have been cut in half! Will sales continue to shrink next year?

After the U.S. stock market closed yesterday, Amazon plummeted again by 3.4% to $84.92, and its market value has fallen by half from its highest point. This level is the lowest closing price since March 2020, which is equivalent to Amazon directly losing all its growth during the epidemic!

This will also be the most exaggerated drop since the bursting of the Internet bubble in 2000. Among the major Internet technology companies that have plummeted this year, the decline is second only to the 66% plunge of Facebook's parent company Meta.

This is a significant reversal compared to the previous two years. We have all seen that Amazon has skyrocketed in the past two years after the epidemic, online orders are hard to come by, and online shopping enthusiasm is unprecedented. However, since the beginning of this year, the consumer side has obviously become weak. Consumers have tightened their belts and have chosen more offline consumption, which has caused e-commerce giants such as Amazon to decline this year.

This year's year-end peak season has not improved much. According to statistics from data agencies, sales after Thanksgiving have slowed down again. Consumers tend to buy cheaper gifts during this holiday to save money.

A temporary traffic bottleneck may not be terrible, but once this trend of tightening purse strings to save money and consume less begins, it is difficult to turn back. The more pessimistic consumers are about the future economic situation, the more they tighten their purse strings and consume less, and the worse the economy will be, forming a vicious cycle. At present, the United States has no large-scale policy to stimulate consumption, and all data agencies are pessimistic about Amazon's future sales.

The U.S. stock market has lowered Amazon's expected sales for 2023 by about 9%-10%. Some analysts have lowered their forecasts by less, but none is less than 4%. This shows that Amazon's situation will be even more severe next year.

Compared with Amazon, the growth of new platforms this year is more impressive. The more tense the consumption is, the more people will go to new platforms with greater subsidies to buy cheap products. During Black Friday, Walmart's search popularity even surpassed Amazon.