So much for Amazon’s (NASDAQ:AMZN) 20-for-1 stock split serving as a catalyst for AMZN stock.

A week after the e-commerce company’s stock began trading on a split adjusted basis of $123, the share price has plummeted 15% to now trade at just under $104. Amazon’s timing for the stock split, its first since 1999, could not have been worse, coming as it did just days before markets around the world sold off sharply, with the benchmark S&P 500 index officially entering a bear market and the technology heavy Nasdaq index down more than 30% since January. It’s the worst start to a year for stocks since 1962 (60 years ago), and the sell-off has pulled Amazon’s share price sharply lower. Through the first half of 2022, AMZN stock is down 40%.

Storm Clouds

To be fair, Amazon’s 20-for-1 stock split still accomplished its goal in that it lowered the company’s share price, making the stock more affordable to investors and increasing the shareholder base. A week ago, an investor who had $2,000 to spend couldn’t buy a single share of AMZN stock. Today, that same investor can buy 19 shares with $2,000 in hand. The fact that Amazon’s stock has continued to fall in price only makes it more affordable and potentially attractive. Investors with a long time horizon should be chomping at the bit to buy Amazon stock at current levels. Just don’t expect a return on the investment in the near term. Markets need to turnaround and Amazon needs to overcome several challenges before its share price stages a sustained recovery.

While the broader market selloff is partially responsible for AMZN stock falling this year, it doesn’t tell the whole story. At the end of April, Amazon reported a net loss of $3.8 billion, the Seattle-based company’s first loss since 2015. The loss was due to Amazon taking a $7.6 billion loss on its investment in electric vehicle maker Rivian (NASDAQ:RIVN), whose stock has plunged nearly 75% this year. However, revenue at Amazon rose only 7% during Q1, compared with 44% growth a year earlier. It marked Amazon’s slowest rate of revenue growth for any quarter since the dot-com bubble burst in 2001 and the second straight period of single-digit growth for the online retailer that thrived while people were locked down at home during the pandemic.

Inflation, supply chain constraints, Covid-19 lockdowns in China, the return of in-person shopping at retail outlets, and higher wages for staff are just a few of the storm clouds that have rained on Amazon’s parade and slowed the company’s growth this year. Moving forward, Amazon is taking steps to improve its situation and get its business back on track.

Silver Lining

Despite the disappointing first quarter numbers and share price depreciation, there is still reason to be optimistic about Amazon. Investors searching for a silver lining need look no further than Amazon Web Services (AWS), the company’s cloud computing segment. In Q1 of this year, AWS sales rose 37%, and its operating income climbed 55% to $6.2 billion. All of Amazon’s other segments posted operating losses in the first quarter, while AWS accounted for the company’s entire operating income of $3.7 billion. Amazon continues to pour resources into cloud computing in an effort to ensure that AWS retains its worldwide market leading position.

In addition to AWS, Amazon remains the undisputed champ when it comes to e-commerce. eMarketer forecasts that Amazon will account for about 40% of all online shopping in 2022. The next 14 digital retailers combined will comprise 30% of online sales. And while it is true that people have returned to in-person shopping at malls and other physical retailers, online shopping is here to stay and has become more entrenched coming out of the Covid-19 pandemic. Amazon also continues to push into new business areas, chief among them streaming. Following its $8.5 billion acquisition of MGM Studios, Amazon is now building out its content pipeline on the Prime streaming platform.

Trust in the Long-Term Potential in AMZN Stock

Things are ugly in the market right now and it can be difficult to have faith. But eventually, the downturn will end, stocks will bottom, and a new bull market will take hold. When that happens, Amazon will be a good stock to own. Despite its immediate challenges, Amazon continues to be dominant in several areas, notably e-commerce and cloud computing. The company also has pockets deep enough to maintain a robust innovation pipeline. And, best of all, the stock is cheaper now than it has been in more than a decade following the 20-for-1 stock split. For these reasons, investors should trust in the long-term potential of the e-commerce giant. AMZN stock remains a buy.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.