With Amazon.com Stock Sliding, Have You Assessed The Risk?
Amazon.com (AMZN) stock is down 10.7% in 5 trading days. The recent slide reflects renewed concerns around slowing AWS growth and its competitive cloud market, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Amazon.com stands today.
- Size: Amazon.com is a $2.4 Tril company with $670 Bil in revenue currently trading at $222.55.
- Fundamentals: Last 12 month revenue growth of 10.9% and operating margin of 11.4%.
- Liquidity: Has Debt to Equity ratio of 0.06 and Cash to Assets ratio of 0.14
- Valuation: Amazon.com stock is currently trading at P/E multiple of 33.5 and P/EBIT multiple of 27.8
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 1.3% within a year. See AMZN Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside High valuation – making the stock Fairly Priced. For details, see Buy or Sell AMZN Stock
That brings us to the key consideration for investors worried about this fall: how resilient is AMZN stock if markets turn south? This is where our downturn resilience framework comes in. Suppose AMZN stock falls another 20-30% to $156 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- AMZN stock fell 56.1% from a high of $186.57 on 8 July 2021 to $81.82 on 28 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 April 2024
- Since then, the stock increased to a high of $254.00 on 3 November 2025 , and currently trades at $222.55
| AMZN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -56.1% | -25.4% |
| Time to Full Recovery | 470 days | 464 days |
2020 Covid Pandemic
- AMZN stock fell 22.7% from a high of $108.51 on 19 February 2020 to $83.83 on 12 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 14 April 2020
| AMZN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -22.7% | -33.9% |
| Time to Full Recovery | 33 days | 148 days |
2018 Correction
- AMZN stock fell 34.1% from a high of $101.98 on 4 September 2018 to $67.20 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 February 2020
| AMZN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.1% | -19.8% |
| Time to Full Recovery | 407 days | 120 days |
2008 Global Financial Crisis
- AMZN stock fell 65.3% from a high of $5.04 on 23 October 2007 to $1.75 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 October 2009
| AMZN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -65.3% | -56.8% |
| Time to Full Recovery | 337 days | 1480 days |
Feeling jittery about AMZN stock? Consider portfolio approach.
Stock Picking Falls Short Against Multi Asset Portfolios
Stocks can jump or crash but other assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices