SHARE OF THE WEEK: Amazon hopes to spark life back into shares

Amazon will try to revive its stock next week when it reveals its third quarter results.

The online giant has seen its shares fall by nearly a third this year, heading into its worst year since 2008.

Profits are hurt by rising costs, while pressure on household finances has led to a decline in consumer spending.

Boss Andy Jassy, ​​who took over from founder Jeff Bezos last July, has launched a wave of cost-cutting measures, including a hiring freeze.

And he’s made huge price increases for subscriptions to Amazon’s Prime service, which offers free delivery and access to his TV shows and movies.

In the UK, the annual subscription cost increases by a fifth from £79 to £95.

Investors will hope for evidence that the plan is working when it updates the stock market on Thursday.

Analysts will also watch for signs that price increases are causing customers to switch to cheaper alternatives. And they’ll be looking for updates on its expansion into more profitable areas, including the launch of a UK insurance price comparison website last week.

Hargreaves Lansdown analyst Susannah Streeter said it is “Amazon’s ease of use that gives it a competitive edge”.

But she added: “However, in the midst of the cost of living crisis, consumers may prioritize value over efficiency, giving greater resilience to price-competitive rivals.”