Amazon shares fall the most in 11 weeks on Wednesday, company halts alcohol sales in Northern Ireland under new Brexit regulation

According to a report by broadcaster ITV earlier this week, Amazon.com Inc has stopped selling wines, beers and spirits in Northern Ireland and intends to de-list more items as a result of new Brexit customs rules.

According to ITV, Amazon will now have to pay excise duty twice on alcohol shipments, sent from the British mainland across the Irish Sea to Northern Ireland.

Amazon shares closed lower for the fourth time in the past ten trading sessions on NASDAQ on Wednesday. It has also been the steepest single-session loss since November 10th. The stock went down 2.81% ($93.55) to $3,232.58, after touching an intraday low at $3,208.00, or a price level not seen since January 20th ($3,175.00).

Shares of Amazon.com Inc have retreated 0.75% so far in 2021 compared with a 0.14% loss for the benchmark index, S&P 500 (SPX).

In 2020, Amazon.com Inc’s stock went up 76.26%, thus, it outperformed the S&P 500, which registered a 16.26% gain.

Britain parted ways with the European Union’s single market and customs union on December 31st, while introducing paperwork and customs declarations for import and export-oriented businesses.

To maintain an open border between the British province of Northern Ireland and EU member Ireland, the UK and the EU reached a separate agreement, which requires a regulatory border in the Irish Sea between Northern Ireland and the remainder of the United Kingdom.

Analyst stock price forecast and recommendation

According to CNN Money, the 44 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $3,800.00, with a high estimate of $4,500.00 and a low estimate of $3,048.00. The median estimate represents a 17.55% upside compared to the closing price of $3,232.58 on January 27th.

The same media also reported that at least 41 out of 48 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 3 – as “Hold”.

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