Amazon.com Inc. is experiencing a decline in stock performance, lagging behind the Nasdaq 100 Index amid a stock market increasingly focused on artificial intelligence. The company's stock has gained only 4.6% this year, compared to the Nasdaq's 12% increase. Concerns about Amazon's cloud-computing growth and investment returns in AI have exacerbated this issue. Traditional strengths, such as a diverse business portfolio, are now viewed negatively, as investors lean towards pure-play AI companies. Recent plans to enhance service offerings have not alleviated investor concerns.
Amazon.com Inc. is losing ground in a stock market focused on artificial intelligence, with shares lagging behind the Nasdaq 100 Index this year.
Despite a 4.6% gain, Amazon's stock is in the bottom half of Nasdaq 100 performers and trading near its largest historical discount to the index.
The decline is linked to disappointing growth in Amazon's cloud-computing business, raising concerns of potential market share loss and investor frustration with slow returns from AI investments.
Amazon's diversity of businesses, which traditionally attracted investors, is now seen as a disadvantage, holding back stock performance amid a preference for focused AI investments.
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