Amazon.com, Inc. stock (NASDAQ:AMZN) was trading 0.90% down at $114.16, off the session high of $118.32, on Monday afternoon.
Amazon stock (NASDAQ:AMZN) is trading down as fears about more Fed rate rises and a strengthening of the US currency versus other foreign currencies persist.
Stocks of many retail and clothing firms have also fallen in recent sessions as investors continue to examine Wednesday’s Fed speech and 75 basis point rate move. A slowing economy might have a detrimental influence on discretionary expenditure.
Over the last five sessions, Amazon stock (NASDAQ:AMZN) have down 7.12% to $113.73.
What happened?
Last Wednesday, the Federal Reserve lifted its target fed funds rate by 0.75% to a new range of 3% to 3.25%, the third 0.75% increase in four months. The Fed said it would stick to its previously stated goal of allowing Treasury securities, To roll off agency debt and agency mortgage-backed securities its balance sheet monthly.
“Inflation is elevated, reflecting pandemic-related supply and demand imbalances, increased food and energy costs, and wider pricing pressures,” the Fed said in a statement.
Is There Any Good News for Amazon Stock?
Perhaps the most compelling reason to invest in Amazon is its dominant position in the cloud. According to research company Markets and Markets, Amazon Web Services (AWS) is the largest supplier of cloud infrastructure services in an industry that is expected to expand to $947 billion by 2026, up from $445 billion in 2021. AWS is already very lucrative; it produced $5.7 billion in operating income in the second quarter alone. And it’s expected to grow into a much bigger and more profitable industry as firms moving their operations in the near future to the cloud years.
Featured Image – Megapixl © Wolterk
Author Okoro Chinedu 
