How Is Amazon’s Stock Holding Up Since the Spread Of Coronavirus?

by Trefis Team
-11.12%
Downside
2879
Market
2559
Trefis
AMZN
Amazon
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Amazon (NASDAQ:AMZN) stock took a big hit, falling by about 11.8% since March 8, (through March 12), as the broader S&P 500 fell by over 16.5%. The stock is down by a total of over 16.5% since early February. There were two broad trends driving the sell-off. Firstly, the increasing number of Coronavirus cases outside China is causing mounting concerns of a global economic slowdown. Secondly, crude oil prices plummeted by more than 20% after Saudi Arabia launched an all-out price war by boosting production in a bid to gain market share. In this analysis, we compare the performance of Amazon to the S&P 500 over the current crisis and the economic crisis of 2007-08 to take a look at where the stock could be headed.

View our detailed dashboard analysis ‘2007-08 vs. 2020 Crisis Comparison: How Did Amazon Stock Fare Compared with S&P 500?’

Amazon Stock Vs. S&P 500 2020 Coronavirus/Oil Price War Crisis

  • Amazon stock declined by about 11.8% from March 8 to 12th, and the stock is down by about 16.5% since February 1, after the WHO declared a global health emergency.
  • The S&P 500 declined by 16.5% from March 8 to 12th, and has fallen by 25.4% since February 1, after the global health emergency was declared by the WHO.

Amazon Stock vs. S&P 500 Performance 2007-08 Financial Crisis

  • Amazon stock declined from levels of around $93 in October 2007 (the pre-crisis peak) to levels of around $65 in March 2009 (as the markets bottomed out) and recovered to levels of about $134 in early 2010.
  • Through the crisis, Amazon stock declined by as much as 30% from its approximate pre-crisis peak. This marked a lower decline than the S&P which fell by as much as 51%.
  • However, the stock recovered strongly, rising by 107% between March 2009 and January 2010. In comparison, the S&P rose by about 48% over the same period.

 

 

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