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Amazon stock shares drop nearly 20% on weak holiday sales predictions

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Posted at 8:19 PM, Oct 28, 2022
and last updated 2022-10-28 22:19:12-04

After showing record profits during the pandemic, Amazon saw its stock shares drop nearly 20% during trading this week on Wall Street after weaker than expected forecast data was released on its expected holiday season performance.

In the three month time span that ended on Sept. 30, Amazon reported sales of $127.1bn, which was a little less than was previously forecasted.

Amazon, as a company, is particularly susceptible to the stress of inflation on the economy. Rising fuel and energy costs coupled with Amazon itself raising prices on its subscription members and items themselves, has all had an effect on profits.

In September, Bloomberg reported that California was suing Amazon alleging the company artificially keeps its prices high.

Attorney General Rob Bonta announced that the antitrust suit accuses Amazon of challenging merchant agreements which prohibit the company's sellers from making their prices lower on other sites, and says Amazon will impose large penalties if it happens.

Bonta said in the suit that Amazon blocks competition among online retailers and that causes inflated fees and higher prices for consumers.