Amazon Stock Price Up 7% in March – Time to Buy AMZN Stock?
Amazon’s stock price increased by 7 percent in March. As a result, Amazon has lowered its YTD losses to a mere 1.2 percent and outperformed the FAANG peers and the S&P 500.
Amazon was the worst-performing FAANG stock of the year, and Netflix was the second-worst FAANG of 2021, not only in 2021 but also in 2022.
Recently Amazon stock has seen some promising developments. First, Amazon fulfilled the merger of MGM and is now part of Amazon Studios and prime videos. The second Largest deal of Amazon is worth $8.5 billion, announced in 2021. Third, MGM is a plus point to the company’s streaming business.
MGM deal would add over 17000 TV shows and 4000 movies to Amazon prime. In addition, billions have been given by the company to produce new content to hold on to customers and increase its customer base.
Sixty-eight physical stores in the US and UK will be closed, Amazon said. However, Grocery stores and food stores will continue.
Amazon didn’t split their share, whereas, on the other hand, US tech companies have split their shares. The last time the company split its shares was in 1999. Many investors have been telling Amazon to split the stock, but the Amazon keeps ignoring it. Now, since the company CEO has changed and the new CEO Mr. Jeff Bezos has taken over the company, he has announced a split.
Amazon’s revenue is $137.4 billion, 9 percent more than last year’s corresponding period. However, the company’s sales slightly lowered.
Ad revenue was $9.7 billion in the fourth quarter,32 percent higher. Amazon CFO Brian Olsavsky said that the team is pleased with the Ad growth.
The company said that the price of a Prime subscription would increase by $20 to $139, and the monthly subscription price would be $14.99 means a rise of $2.