Loyalty & Rewards

2014: Amazon’s Worst Year Since 2008

Been a tough year for Amazon: the e-commerces giant’s shares are down a staggering 22 percent since last January, leaving Amazon chief Jeff Bezos nearly $7.4 billion poorer than he was this time last year.

Bezos’ 18 percent holdings in Amazon are still far from worthless; at the current price his stock is worth around $26 billion.

Amazon has seen its stock price take a hit in the last year as shareholders have been less than wholly exicited by Amazon’s attempts at expansion with the Fire phone (a flaming flop), same-day delivery, Fire TV and a host of other new initiatives.

In Q3 of 2014, Amazon took a $170 million charge for the Fire phone and said it had $83 million in inventory. It has since dropped the price with a contract to 99 cents.

There is good news: the Prime unlimited shipping program continues to add new members,  despite a 25 percent jump in price to $99 annually. It can also boast growing sales in its core e-commerce unit.

This is not the first tough year Amazon has ever had.  Shares plunged 44 percent in 2008, though that was only its second-worst year as a public company. The shares fell nearly 80 percent in 2000, the year some analysts speculated the Seattle firm would go bankrupt.



Latest Insights:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. In the December 2019 Mobile Card App Adoption Study, PYMNTS surveyed 2,000 U.S. consumers for a reveal of the four most compelling features apps must have to engage users and drive greater adoption.

Click to comment