To The Moon

Amazon (NASDAQ:AMZN) conducted a stock split earlier this month to make its shares more attractive to retail investors. Despite a short-term pop as the split went into effect, the e-commerce giant has drifted back down towards its 52-week low in recent days.

Worries about inflation and the health of the economy have weighed on AMZN, as well as ongoing tension over unionization. Given this environment, has the stock fallen far enough to become a buy?

After the Split

On June 6, Amazon (AMZN) put a 20-for-1 stock split into effect. The process effectively cut the firm's share price to 1/20th of its previous level -- making AMZN affordable to a new cohort of shareholders.

The move to make the stock accessible to more retail investors initially had the desired effect. The stock rose 2% on June 6, its seventh gain in the previous eight sessions. Shares also recorded their highest finish in more than a month.

These gains were short-lived, however. Deteriorating market sentiment has put pressure on AMZN, amid rising fears about inflation and the prospect that increasing interest rates will eventually trigger a recession.

In intraday trading on Friday, shares have fallen more than 5%. This marked the fourth consecutive day of declines, including a 4% slide during the previous session. All told, shares have dropped nearly 12% since the day after the stock split.

AMZN now trades at about $110 per share, still off a 52-week low of $101.26 reached last month. This remains a far cry from the 52-week high of $188.65 reached last summer, as the company benefited from pandemic-induced demand for online shopping.

Shares have now fallen about 42% from that peak.

Is AMZN a Buy?

Even with the declines in 2022, the sentiment on Wall Street remains overwhelmingly positive towards Amazon (AMZN). Of the 52 analysts surveyed by Seeking Alpha, only three have less than a Buy rating on the stock.

All told, 36 analysts have a Strong Buy opinion, while another 13 have issued a Buy recommendation -- meaning 94% of market experts have a bullish view of the stock. There is also one Hold rating, one Sell opinion and one Strong Sell recommendation.

Quantitative measures have a more cautious view of the stock. Overall, Seeking Alpha's Quant Ratings view AMZN as a Hold.

The online retailer gets high marks for profitability and growth, with an A+ and B+ in those categories, respectively. However, the Quant Ratings give the stock a C for momentum and an F for valuation.