What are the biggest risks of investing in Amazon stock?

As with any stock, there are a number of associated risks. The very 1st risk would be the fact that the United States and other world economies go into recession and in so doing, consumer spending slows down and companies reign in costs and decrease spending on cloud computing which makes up a large majority of their revenue and growth.

Is additional risks are that Labor costs continue to increase thereby putting pressure on the company’s margins. In addition, as already seen, labor is fighting for unionization which would increase the costs overall.

Lastly but not conclusively, the market in general is and could continue, to value high price-earnings and high prices sales companies at lower levels, thereby putting pressure on the stock price

Leave a Comment

Your email address will not be published.