2023-06-08 07:30:00 ET
Many stocks that had a terrible 2022 are rebounding strongly in 2023. Take Amazon (NASDAQ: AMZN) , for example; its stock fell 50% in 2022 and has now risen about 45% in 2023. However, that doesn't equate to approaching a break-even figure. When a stock loses 50%, it must double (return 100%) to achieve its previous price. Think of it this way: If you had $1 and lost 50%, you'd have 50 cents. To return to the previous $1, you'd need to double what you have.
Doubling a stock price is no easy feat and often takes time. So with Amazon's stock closing in on a 50% gain in just under six months, is it still a buy? Or has it reached a limit? Let's find out.
Amazon's business likely needs no introduction. Its online stores revolutionized how consumers shop and how quickly packages are delivered, but Amazon is much bigger than that. While Amazon is known for the products it sells, this business isn't growing, as it was flat in Q1. However, its third-party seller services segment is rapidly increasing because third-party vendors use Amazon's platform to sell their items. With this segment up 18% in Q1, it's picking up where Amazon's online stores' segment left off.
For further details see:
Amazon Stock Is Up 50% This Year. Is It Still a Buy?