Stock Market Analysis and Your Career Path

Instructions
Overview
In this assignment, students will conduct an examination of internal and external factors used for an
analysis of a common stock performance. Instructions for this assignment are found in the Assignments
section of the appropriate Module in Content.
Outcomes

2. Identify the factors considered when deciding to become a publicly traded business. (B, C)
3. Point out internal and external factors that influence stock prices. (B, I, J)
4. Identify a potential career path in business and the skills and competencies needed to succeed. (A)
   Category: Business Studies

Module 5 Assignment 2: Stock Market Analysis and Your Career Path

Amazon is among the leading e-commerce companies globally. According to Cimino (2022), Amazon.com Inc. common stock is traded on the National Association of Securities Dealers Automated Quotations (Nasdaq) stock market. The symbol for the stock is AMZN. However, Amazon recently received much attention in the investment industry since the organization completed a stock split. The split does not affect the firm’s valuation. However, as the business produces new shares for existing shareholders, the value of each share decreases. Amazon is now trading for around $120 per share, down from more than $2,000 before the split (Cimino, 2022). Furthermore, Amazon shares have dropped significantly in the first half of 2022 and with approximately a 32% year-to-date (YTD) decline.

The decline can be attributed to the capital market’s plunge caused by high inflation, supply chain issues and Federal Reserve interest rate hikes. This paper, therefore, seeks to provide a stock market analysis, precisely that of Amazon. Additionally, the paper will address my preferred career path and the relevant competencies for the position. Amazon surprised investors and analysts by reporting a net loss of $3.8 billion in the third quarter. That was the first-ever quarterly loss in 7 years, significantly lower than the previous year’s quarterly net income of $8.1 billion (Neiger, 2022). Neiger’s (2022) article argues that the loss was partially caused by Amazon’s investment in electric vehicle (EV) manufacturer Rivian Automotive. It holds roughly 18% of the shares, and Amazon disclosed a pre-tax valuation loss of $7.6 billion in the quarter after the investment.