Final answer:
The question pertains to Amazon's (AMZN) stock performance over four quarters, and analyzing it is relevant to Business, especially within investment analysis and stock market performance at the college level.
The historical context of S&P 500 and AMZN's performance highlights the importance of studying quarterly changes to inform investment strategies.
Step-by-step explanation:
The question examines how Amazon (AMZN) stock performed across four quarters with gains and losses in different periods. This type of analysis is important in the subject of Business, specifically in the area of investment analysis and stock market performance.
By reviewing the fluctuating quarterly performance of AMZN, we consider the impact of gains and losses on overall investment value, using percentages to describe the changes in investment performance.
This approach to understanding stock performance is closely aligned with college-level business and finance courses that cover investment strategies and market analysis.
It is instructive to compare AMZN's performance to historical trends in the S&P 500 as depicted in Table 17.2. The historical data highlight shifts in returns from dividends to capital gains, impacting investors' decisions.
For example, despite a poor economy post-2009, S&P 500 companies saw a profit increase of 9.7% driven by cost-cutting measures, and in subsequent decades, the pattern of capital gains signifies a shift in the sources of investor returns.
Moreover, given shifts from dividends to capital gains, understanding the quarterly performance of a tech giant like AMZN provides insight into contemporary investment dynamics.