Why you should still short Amazon stock?
1 day ago · For a company of Amazon's size, that's quite a bit of scratch, and investors responded to the news by trading its stock down by more than 2% on the day. So what Amazon's unsecured senior debt was...
Why does Amazon not split its stock price?
Mar 07, 2022 · that being said, here are two big things to keep in mind: first, j.p. morgan notes that that while part of the decline in e-commerce spending was due to a "continued resurgence of brick and mortar...
Why is Amazon stock worth so much?
Mar 04, 2021 · Technology Why Is Amazon (AMZN) Down 9.3% Since Last Earnings Report? Contributor Zacks Equity Research Zacks Published Mar 4, 2021 11:30AM EST A month has gone by since the last earnings report...
Why is Amazon stock declining?
Jul 30, 2021 · Why Amazon Stock Is Down By 7% Today Vladimir Zernov July 30, 2021, 8:06 AM · 2 min read Amazon Stock Dives On Weak Q3 2021 Guidance Shares of Amazon found themselves under significant pressure...
What happened
Shares of Amazon.com ( AMZN -3.58% ) fell on Friday following the release of the e-commerce giant's second-quarter results. As of 3:15 p.m. EDT, Amazon's stock price was down more than 7%.
So what
Amazon's net sales jumped 27% year over year to a staggering $113.1 billion, fueled by strong gains in its cloud computing and advertising businesses. Amazon Web Services (AWS) delivered revenue growth of 37%, up from 32% in the first quarter.
Now what
Chief Financial Officer Brian Olsavsky said during a conference call with analysts that Amazon's e-commerce growth is slowing as the economy reopens. "I think the impact of people getting vaccinated and getting out in the world, not only shopping offline, but also living life and getting out, it takes away from shopping time," Olsavsky said.
Why is Amazon stock going down?
Firstly, there has been a visible shift from growth names to value stocks and Amazon ticks the wrong boxes. Also, from a company-specific perspective, Amazon’s Q2 2021 earnings disappointed markets. While the company posted better-than-expected profits, its revenue growth was below what analysts were expecting.
AMZN stock forecast
Wall Street analysts are quite bullish on AMZN stock and all 30 analysts polled by TipRanks gave rated it as a “buy” or some equivalent. Its average target price of $4,214.3 is a premium of 28.5 percent above current prices.
Should you buy or sell Amazon stock now?
Amazon stock has looked weak and the recent weakness looks like a good buying opportunity. The company has a strong business model and the e-commerce platform has a good moat. Amazon provides a complete ecosystem to consumers which is tough to emulate.
How many products did Amazon sell during the holiday season?
Robust performance delivered by Amazon during the holiday season drove top-line growth. Notably, it sold more than a billion products under the categories of toys, electronics, home, fashion, beauty and personal care across the world during the holiday shopping period.
When did Zacks discover earnings estimate revisions?
In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com. Learn More.
What companies are under attack for anticompetitive practices?
Facebook, Amazon, Apple, Google and other big tech companies are under attack for their "anticompetitive" practices, with bipartisan legislation and lawsuits in the works to target monopolistic behavior. Jul 6, 2021.
How much is cash equivalent in 2020?
As of Dec 31, 2020, cash and cash equivalents were $42.1 billion compared with $29.9 billion as of Sep 30, 2020. Further, marketable securities totaled $42.3 billion at the end of the fourth quarter, up from $38.5 billion at the end of the third quarter.
What happened
Shares of Amazon ( NASDAQ:AMZN) fell 10.3% in January, according to data from S&P Global Market Intelligence.
So what
Market dynamics were probably entirely to blame for Amazon stock's weak start to 2022. In January, the S&P 500 and tech-heavy Nasdaq Composite indexes were down 5.3% and 9%, respectively. The Nasdaq is arguably the better index in which to gauge Amazon stock's relative performance.
Now what
Investors can expect material news very soon. Amazon is slated to report its fourth-quarter and full-year 2021 results after the market close on Thursday, Feb. 3. An analyst conference call is scheduled for the same day at 5:30 p.m. ET.
Amazon stock recent developments
Netflix released its fourth-quarter earnings yesterday. It was the first FAANG name to release its earnings. However, the earnings were a big disappointment and despite massive investment into new content, the company’s subscriber growth numbers were below estimates.
Anti-trust trouble
US tech giants have been facing heat over their alleged monopolies. The Senate Judiciary Committee has approved an anti-trust bill. As expected, tech giants like Apple and Google have opposed the bill. An Amazon spokesperson termed it an “ambiguously worded bill with significant unintended consequences” for small businesses.
Amazon would release fourth-quarter earnings
Amazon would soon release its fourth-quarter earnings. Analysts polled by TIKR expect the company to post revenues of $137.6 billion, a YoY rise of 9.7%. Here it is worth noting that AMZN has missed revenue estimates for two consecutive quarters. Also, its fourth-quarter guidance was also below par.
AMZN stock forecast
Despite the underperformance, Wall Street analysts remain bullish on Amazon stock. Many brokerages including Cowen, Bank of America, and Goldman Sachs have listed Amazon as a top pick for 2022.
Amazon has a strong competitive position
Amazon is the leader in the US e-commerce market. Also, it is the largest cloud infrastructure company accounting for almost a third of the total market. The pace of digitization has increased due to the COVID-19 pandemic. A lot of consumers who were not comfortable with online shopping have also pivoted to buying goods online.
Amazon stock long term forecast
Amazon is not only an e-commerce platform but a complete ecosystem. The company has services like Prime which add to customer stickiness on the platform. Also, it is a play on the massive amount of user data that it has which it can use to show relevant products.
Should you buy AMZN stock?
AMZN’s valuations look attractive after the recent underperformance. There has been a sell-off in growth names which has hit all the companies, including the fundamentally strong quality names like Amazon. However, AMZN is a long-term growth story as both e-commerce and cloud are structural growth themes.
