Amazon’s stock has doubled in value in the past week, but it’s not all positive.
It seems the company is losing its mojo as it faces a crisis in its stock price, but the stock could be gaining momentum.
The stock has jumped as high as $8.26 since Amazon revealed the new growth strategy and it now stands at $9.18.
While the stock has risen about a tenth of a percent, Amazon is not losing any ground.
The company posted a profit for the third straight quarter last week and its stock is trading at $2.18 higher than its price a week ago.
“Amazon is gaining momentum,” said Michael Oreskes, an analyst with RBC Capital Markets.
“It’s not quite what it once was, but its momentum is building.”
The growth strategy involves investing in new business models that include selling e-books and selling books.
Amazon has also added an additional 3,000 jobs, and its net income increased to $3.4 billion.
“This is a good sign for Amazon,” Oresks said.
“We’ve had some pretty strong earnings for the past few years.”
Amazon’s profit fell to $1.85 billion from $2 billion in the same quarter last year.
Amazon’s revenue fell to just $3 billion last year, but that number rose to $16 billion this year.
It’s clear that Amazon is trying to regain momentum after its earnings drop.
Amazon CEO Jeff Bezos said last week that Amazon’s profits were “not the best in history,” and he said the company would be looking to add 3,500 jobs to its workforce this year and 5,000 by 2019.
Amazon added a whopping 7,500 workers last year alone.
But Amazon has been under pressure in recent months to improve its profitability.
The retailer announced a plan to cut its workforce by 40 percent this year, and it’s working to achieve that goal by 2017.
Amazon also announced it would cut expenses by another 25 percent this fiscal year, which could mean another $1 billion in savings in the coming years.
However, the company has already had some setbacks.
Last month, Amazon lost an antitrust lawsuit in New York, which means it won’t be able to compete directly with rivals like Walmart and Target in the e-commerce market.
Amazon was also hit by a data breach that affected millions of customers’ credit card information.
The data breach is thought to have affected at least 100 million customers.
“The big question is how many people did this, how many were impacted by it, and how big is the impact,” said Adam Lerner, a market analyst with Morningstar.
“So we will have to wait for a more comprehensive study of the data breach before we can know whether the damage is more than we originally thought.”
Amazon said last month that it will cut 2,000 employees, but those cuts are likely to be more than a one-time thing.
Oreske said that if Amazon doesn’t improve its margins or profits in the near future, it could be a very tough time for the company.
“There are a lot of things that are hurting the company right now,” Oeskes said.