As consumers shift their spending from goods sold by retailers, to services, the miracle-stimulus-fueled demand for goods is reverting to pre-pandemic trends. Demand for services, which had collapsed during the pandemic, has been rising toward pre-pandemic trends. And the stocks of online retailers, after the hype and hoopla for them during the pandemic, are now getting shookalacked.

Amazon had plunged 14% on April 29 after reporting a big loss, the slowest revenue growth since the dotcom bust, and rip-roaring expenses, topped off by nauseating guidance. Today, Amazon dropped another 7.6%, to $2,328.14, back to April 2020, and is down 38% from its high last July, despite all the financial engineering (a 20-for-1 stock split and mega share-buybacks) announced in March in order to stem the decline by then already under way (data via YCharts):

eBay, which has been mildly profitable for years, last night reported a net loss of $1.3 billion – compared to a net profit of $568 million in the quarter a year ago – driven by a loss in its stock holdings. It reported a 6% decline in revenues, with gross merchandise volume down 20%. And it lowered its guidance. Shares kathoomphed 11.7% today, to $48.04, are down 41% from the high in November 2021.

Massacre of the Online Retail Stocks Amazon, eBay, Wayfair, Etsy, Shopify, Chewy, The Honest Co., as Folks Shift Spending from Goods Back to Services | Wolf Street