Amazon’s stock plunges toward first bear market in 2 1/2 years

Shares of Amazon.com Inc.
AMZN, -6.33%
tumbled 7.3% in afternoon trade Monday, putting them on track to kick off their first bear market in over 2 1/2-years. The e-commerce and cloud giant’s stock, which was headed toward the lowest close since April 26, 2018, has now plunged 14.5% in two days, since the company reported third-quarter results after Thursday’s close, shaving off about $126.4 billion in market capitalization during that time. That put the stock 25.3% below its Sept. 4 record close of $2,039.51. Many on Wall Street define a bear market as a decline of 20% or more from a bull-market peak. Amazon’s last bear market ended on March 1, 2016, when it closed 20.1% above its Feb. 9, 2016 bear market low of $482.07, which was 30.5% below the previous bull-market peak of $693.97 on Dec. 29, 2015. Of the so-called FANG stocks, Amazon’s selloff means only Google parent Alphabet Inc.’s stock is not yet in a bear market. Shares of Facebook Inc. were down 35.1% from their bull-market peak and Netflix Inc.
NFLX, -5.00%
shares have lost 32.4% from their peak, while Alphabet’s stock was just 19.8% below its peak. Meanwhile, Apple Inc.’s stock
AAPL, -1.88%
an honorary “FAANG” member, is down just 8.2% below its bull-market peak. In comparison, the S&P 500
SPX, -0.66%
has lost 10% since its Sept. 20 record close of 2,930.75.
Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Read More