Amazon’s shares have fallen hard – value investors should take note

Investors have dumped Amazon shares as post-pandemic life returns to normal. But it still has plenty of competitive advantages, says Russell Hargreaves, and value is now beginning to emerge.

Amazon warehouse
Amazon’s pandemic hiring and warehouse-building binge will hit profitability this year
(Image credit: © Oli Scarff/Getty Images)

Amazon (Nasdaq: AMZN) shares have slumped by around 36% since the beginning of the year. That compares to a 28% decline for the Nasdaq index.

Investors have dumped Amazon as part of the general shift away from pandemic-winners. But there’s more to it than that – Amazon is also facing growing challenges as consumer habits change.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.