Amazon Stock Slides Amid Delivery Network Concerns
Amazon's stock price took a hit on Tuesday afternoon, dropping nearly 2% to $248.73 after the company paused air cargo operations with 21 Air following a fatal crash.
The crash killed five people and injured five others at Miami International Airport on September 6. Amazon's logistics network is central to its retail promise, and interruptions can draw attention due to the importance of fast shipping in its Prime membership pitch.
Amazon announced that it would resume operations with 21 Air once the investigation into the crash is complete. The incident has put the company's delivery network under scrutiny as it prepares for Prime Big Deal Days on October 6 and 7, which will offer Prime member-exclusive deals across more than 35 categories.
The company's focus on Amazon Web Services (AWS) and artificial intelligence demand remains a key driver of growth. Analysts are projecting about 20% annual earnings growth for Amazon, with the stock trading at about 20 times forward earnings.