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TSLA, FB, AAPL, AMZN, RBLX: Why Are Stocks Down Today ...

As of this writing, both Amazon (NASDAQ: AMZN) and Meta Platforms (NASDAQ: FB) are down more than 1%. Apple (NASDAQ: AAPL) has fallen by almost 1.5% and video game producer Roblox (NYSE: RBLX) by ...

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As a new trading week kicks off, investors can only watch and wait as tensions continue to rise. With the Russia-Ukraine conflict continuing to weigh on stocks, Wall Street is worried about what will come next. The United States and the United Kingdom have already imposed sanctions on Russia, and Russian stocks have been in a race to the bottom. The ripple effects of the conflict are dragging U.S. stocks down too. Now, investors are left to consider some troubling questions. The biggest question is why are stocks down today?

Image of the Wall Street Bull.

Source: photo.ua / Shutterstock.com

Why Are Stocks Down Today?

In a nutshell, the escalating Russia-Ukraine conflict is continuing to push stocks down. This was a dominant market trend last week, and it isn’t likely to ease within coming days. However, today’s market decline does warrant a closer examination of the stocks that have fallen and continue to slip.

Today began with several titans of American industry tumbling. As of this writing, both Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:FB) are down more than 1%. Apple (NASDAQ:AAPL) has fallen by almost 1.5% and video game producer Roblox (NYSE:RBLX) by 3%. Worse performance comes from Tesla (NASDAQ:TSLA), which has plunged by more than 4% so far.

Why It Matters

Stocks tumbling amid geopolitical tension is hardly unique. When economic sanctions are threatened against a nation with an important global trade presence, a natural instinct for investors is to sell off stocks with ties to that nation. Indeed, stocks with strong Russia ties such as Caterpillar (NYSE:CAT) and Deere (NYSE:DE) have also been falling.

An analysis of the stocks down today reveals another important lesson for investors — that even the most powerful stocks are not immune to this kind of negative momentum. When a global conflict is dominating headlines, it pushes all stocks down. Tesla has withstood multiple product recalls and many other negative headlines since the year began. The threat of a Ukraine invasion, though, has pushed its stock to new monthly low.

The same goes for other stocks down today. RBLX stock has been touted for its metaverse applications. And in the face of supply chain difficulties, AAPL stock has rallied and impressed even skeptics. Prior to the conflict, it was riding high on anticipation of upcoming product launches.

What It Means

In sum, many investors consider the stocks down today as long-term winners. In better times, they are the names that come up when the topic turns to companies considered too big to fail. They will all rebound, but it will not happen overnight.

What investors should take from today’s events is that the importance of the Russia-Ukraine conflict should not be underestimated. It is pushing stocks down throughout Russia, but all other financial markets are going to feel the pain until these geopolitical tensions are eased. Investors should not be discouraged, but they should be patient.

On the date of publication, Samuel O’Brient 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.

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Amazon Stock Split Puts It in Play to Join the Dow

Shares in Amazon.com (AMZN, ,785.58) popped at Thursday's opening bell in an otherwise down market after the e-commerce colossus said it would effect a 20-for-1 stock split and buy back up to ...

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Shares in Amazon.com (AMZN, ,785.58) popped at Thursday's opening bell in an otherwise down market after the e-commerce colossus said it would effect a 20-for-1 stock split and buy back up to billion of its shares.

The Amazon stock split will be the fourth in the company’s history, and it follows on the heels of Google parent Alphabet's (GOOGL) own 20-for-1 split announced in February. 

And just as with Google's move, Amazon's stock split could open the door for its inclusion in the elite Dow Jones Industrial Average one day.

Amazon, which announced the stock split late Wednesday, will give each shareholder 19 additional shares for each share held (pending shareholder approval, of course) on June 3. The company said AMZN stock will begin trading on a post-split basis on June 6.

Based on current levels, shares would go for just under 0 apiece following the Amazon stock split. That should make AMZN shares more attractive to retail investors currently put off by the four-figure sticker price of more than ,900.

"This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company," an Amazon spokesperson said.

Despite what the textbooks say, the market loves stock splits. And that continues to be true even in an age when brokers are happy to sell clients fractional shares for free.

After all, splits might give traders and investors more flexibility, but they have absolutely zero impact on a company's fundamentals, prospects or its shares' valuation. That's because a split is essentially the same thing as making change. In this case, shareholders will effectively be swapping a bill in return for 20

bills.

The billion share repurchase program, however, is another matter entirely. It replaces Amazon's previous billion stock repurchase authorized in 2016. The company bought back .12 billion of its shares under that plan.

By reducing its share count, Amazon's remaining shares will have greater perceived value by dint of both their increased scarcity and greater claims on future cash flows.

But perhaps the most interesting perceived benefit of the split is that Amazon could be tapped for the 30-stock Dow Jones Industrial Average one day. That's because the blue-chip barometer isn't built like the other two major indexes. 

The S&P 500 and Nasdaq Composite determine their weights by market capitalization (stock price multiplied by number of shares outstanding.) But the Dow – created way back in 1896 – is weighted by the company’s stock price.

That price-weighted construction effectively shuts out companies with lofty share prices, such as AMZN. Indeed, at ,800 a share, Amazon stock would skew the average into meaninglessness.

UnitedHealth Group (UNH), at roughly 5 a share, holds the greatest weight in the average today. Adding AMZN at ,900 would turn the Dow into the “Amazon & Friends Average.”

That said, while the Amazon stock split might make Amazon a more realistic addition to the Dow, don’t consider its inclusion automatic. The Dow’s editors at S&P Dow Jones Indices are the ultimate arbiters of that decision – and it’s not a simple one to make.

Amazon is a member of the market's consumer discretionary sector. Home Depot (HD), McDonald's (MCD) and Nike (NKE) are already representatives of that sector in the blue-chip bastion.

Does one of those stocks get the boot? Amazon’s post-split price would be well below that of HD or MCD. Kicking one of those names out in favor of AMZN would lower the consumer discretionary sector's weight in the Dow. Is that a problem? 

Furthermore, the editors construct the Dow to reflect the broader economy. The world's largest fast-food chain and nation's largest home improvement retailer represent aspects of the economy that would be diminished with their exclusion. Besides, brick-and-mortar retailers still matter, even amid the rise of e-commerce. Nike, meanwhile, is a massive global vendor in the apparel and footwear industry. 

No, the editors aren't bound by some rule that requires them to swap stocks within sectors. They could add AMZN at the expense of some other sector, for sure. But sector weightings and overall construction of the average … these can be tricky things, and they're issues the editors would have to consider. 

All that said, investors should also know that being tapped for Dow inclusion is largely symbolic. Some .5 trillion is indexed or benchmarked to the widely used S&P 500. That means passive funds tracking the S&P 500 must own all of its components, weighted by market value. Period. Many other sector and “smart beta” funds that track all or part of the index in some way also are forced to own some or all of the S&P 500’s components.

However, only .6 billion is indexed or benchmarked to the Dow. Mega-cap stock AMZN, by itself, is worth roughly 40 times all the money tracking and chasing the industrial average.

True, the blue-chip barometer can't be beat for brand familiarity. It might be fitting if Amazon joined the Dow. But that’s about it.

What we do know about the Amazon stock split is that it should bring in loads of retail investors. That, in turn, could light a small fire under shares, at least for a while. Just be aware that volume in Amazon stock would likely also increase – and so volatility very much could too.

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Why Is Palantir Stock Dropping And Will It Recover? (NYSE ...

Palantir's stock has lost as much as 38% of its value this year and 57% from its November peak. The latest Palantir sell-off follows broader market declines that pushed the S&P 500 and tech-heavy ...

Tech And Media Elites Attend Allen And Company Annual Meetings In Idaho

Drew Angerer/Getty Images News

It has been a turbulent start to the year for Palantir's stock (NYSE:PLTR). While there have not been any material changes to its operating environment nor growth trajectory, the stock has continued on a landslide decline of as much as 38% this year and 57% from its November peak of .11. The stock’s latest declines have been largely influenced by the broader market sell-off that has pushed major benchmark indexes like the S&P 500 and tech-heavy Nasdaq 100 into correction territory.

High valuation, high growth tech stocks like Palantir have not boded well with the latest macroeconomic backdrop. With inflation still running its hottest course in 40 years, the Federal Reserve has become increasingly urgent with swapping pandemic-era stimulus for tightening monetary policy tools like the impending rate hikes. While the timing and magnitude of the upcoming interest rate increases remain uncertain, the majority of traders are expecting up to five quarter-point increases this year, with some even predicting a half-point increase for the first time since 2000. This has further fuelled investors’ angst on the outlook of high-growth tech stocks, as rising interest rates would “put a steeper discount on future earnings”.

But if there is one thing to be learned from the latest earnings season, it would be that investors are especially focused on companies’ growth outlook this time in addition to upbeat financial results from past quarters. While the increasingly hawkish Federal Reserve has unleashed a wave of anxiety that has whipsawed assets in recent months, steep rebounds observed on big tech stocks like Amazon (AMZN) and Google (GOOG / GOOGL) which have reassured their growth prospects prove that the upcoming tightening of central bank policy alone is not enough to “overwhelm the countervailing force of rising profits”.

In Palantir’s case, management had previously guided fourth quarter revenues at about 8 million, which means full year 2021 sales growth has likely reached 40% year-over-year. And looking ahead, the company expects a minimum of 30% year-over-year growth per year for the next four years. Considering Palantir’s operating environment remains largely unchanged since the previous quarter’s earnings call, with continued announcements of new partnerships forged across both the public and private sectors, the company is expected to deliver a stronger-than-expected earnings report next week. Paired with the understanding that Palantir is already operating cash flow positive, its upcoming earnings call would likely help differentiate the stock from others that might “lose momentum once the massive pandemic-related stimulus comes to an end”. Although the road ahead may remain turbulent in the near-term as markets adjust to new central bank policies, Palantir remains an attractive long-term investment at current price levels.

Why is Palantir Stock Dropping?

As mentioned in the earlier section, nothing has materially changed with regards to Palantir’s operating environment nor its growth trajectory. The first wave of Palantir’s latest declines came after the release of weaker-than-expected third quarter earnings results in early November, which unfortunately coincided with the omicron coronavirus variant outbreak that led to a broad-based market sell-off on concerns of an economic recovery slowdown. The stock plummeted by as much as 18% the week of November 8, from its peak of .11 to a low of .12 at the time, after its third quarter government segment revenues showed signs of slowing growth. It then proceeded to fall to the sub- level when Omicron cases began to flare up worldwide, which added to investors’ concerns over equity market’s outlook under increasing economic uncertainty.

The stock was dealt a second major blow within the span of three months after the Federal Reserve took a hawkish turn in December and decided to hasten tapering on the 0 billion monthly bond repurchasing program that was put into place during the onset of the pandemic. The Federal Reserve had originally began dialling back on the program at a pace of billion per month which began in November, then decided to up it to billion per month after the December policy meeting. The new strategy would effectively conclude the pandemic-era stimulus in March instead of July as originally planned, and prepares for a lift-off in interest rates soon after to rein in runaway inflation.

As mentioned in earlier sections, the prospect of aggressive rate hikes is negative news for high growth tech stocks as it would increase their costs of capital and erode the value of their future earnings. The January release of U.S. CPI data for December which showed price increases of 7% – a level not seen in 40 years – further stoked investors’ fear over the potential of more aggressive central bank policies ahead, stirring increased market volatility as they mull on how to price the upcoming rate hike impacts into asset valuations. The latest Federal Reserve meeting in late January has only made things worse. Federal Reserve Chair Jerome Powell acknowledged that inflation remains stubbornly higher than where it needs to be, and that the Federal Open Market Committee is ready to raise interest rates beginning March at a faster pace than the “once-a-quarter hikes that were the norm last cycle” given the current economy and labour market is comparatively stronger.

Paired with the recent release of stronger-than-expected U.S. jobs data and inflation remaining at a 40-year high of 7.5% throughout January, traders are now expecting anywhere between four to seven quarter-point increases this year, with some even preparing for increases at 50-bp-increments early on in the cycle for the first time in more than two decades beginning in March. Specifically, Fed funds futures are now pricing in a “more than 50% chance the central bank will boost rates by a half-percentage point next month for the first time since 2000”. This has accordingly left benchmark indexes like the S&P 500 and the tech-heavy Nasdaq 100 in the red at the time of writing (February 10th), with 10-year Treasury yield breaking 2% for the first time since 2019. As increasing bond yields “pave the way for improved returns on very little risk”, while growth stocks prepare for steeper discounts on future earnings ahead of higher-than-expected rate hikes ahead, the current macroeconomic backdrop makes a recipe for further market volatility in the near-term.

Yet, Palantir's stock has remained resilient during Thursday’s session following the release of U.S. CPI data. The strength likely rides on momentum from the three-day rally that began earlier this week following upbeat reports and growth forecasts from tech peers like Amazon, Snap (SNAP), Pinterest (PINS) and Uber (UBER). Recall that Palantir opened 3% lower on February 3rd, and posted further intraday declines of 7% which marked its latest dip following Meta Platforms’ (FB) release of weaker-than-expected results. This further corroborates the fact that Palantir's stock remains heavily influenced by broad-based market activity, especially those within the tech sector, while also underscoring a potential rebound in response to the release of its own fourth quarter results next week.

Is Palantir a Good Long-Term Stock?

As discussed in one of our recent coverages on the stock, Palantir’s commercial segment revenues have continued to show robust growth momentum in recent quarters. And the healthy pipeline of new partnerships forged in recent months, including those during the fourth quarter with Dewpoint Therapeutics, Merck (OTCPK:MKGAF / OTCPK:MKGAY), Kinder Morgan (KMI) and MSP Recovery, further underscore the likelihood of another upbeat earnings report next week. Meanwhile, the latest partnerships forged with Hyundai Heavy and Satellogic (SATL) further corroborate expectations for a strong growth forecast in the current period that would bolster management’s commitment to another year of 30% revenue growth:

  • Hyundai Heavy: Palantir has rung in the new year with a notable partnership forged with Hyundai Heavy Industries. The million multi-year deal is a symbol of Palantir’s growing presence across the West’s APAC allies, and represents an extension of Palantir’s success in growing its commercial segment over the past year. Under the arrangement, Hyundai Heavy will leverage Palantir’s commercial software, likely Foundry, to create tools for breaking down the siloed data fields across its affiliate groups, which range from shipbuilding to industrial machinery processes, and facilitate better-integrated operations. The two companies intend to create a joint venture to commercialize the new tools built on Palantir’s platform, which will create greater exposure for Palantir’s technological capabilities to the global commercial sector, and further fortify the company’s growth prospects.
  • Satellogic: Palantir has entered into a five-year partnership with Satellogic earlier this month. The latest development builds on proven success from a previous collaboration last year on the deployment of Palantir’s Edge AI platform on Satellogic’s “NewSat” satellites. Satellogic, which recently went public through a SPAC merger with CF Acquisition Corp. V, is “the first vertically integrated geospatial company” that engages in real-time mapping and collection of earth data to infer “planetary-scale insights” that can help solve complex challenges ranging from climate change to energy supply and food security. The two companies will join hands and leverage one another’s expertise to drive operational synergies. On one hand, Satellogic will use Palantir’s Foundry platform to consolidate its disparate data sources into a “single repository for constellation optimization” to enable “accelerated business processes, rapid image product delivery, AI model training, and enterprise-wide data integration”. On the other hand, Palantir will gain access to Satellogic’s “Aleph Platform”. The Aleph Platform will further Palantir’s “MetaConstellation” and “Edge AI” capabilities by granting its existing U.S. government customers access to Satellogic’s profile of “high-resolution satellite imagery [that can drive] analytical insights across a range of mission-oriented use cases”. MetaConstellation is a new software born out of Palantir’s collaboration with NORAD and USNORTHCOM in the ongoing series of Global Information Dominance Experiments (“GIDE”). The software links over 230 satellites operated by various space companies, and leverages Palantir’s existing Apollo delivery system and Edge AI platform to compile data and generate real-time insights to be sent back to decision-makers on earth. While revenues generated from the Satellogic deal would fall into Palantir’s commercial segment, the extended availability of data coming out of this partnership is expected to further bolster its government opportunities in the long-run as well, which reinforces its growth outlook ahead.
  • Ferrari: The world class maker of supercars (RACE) has extended an existing partnership with Palantir that began in 2016 for another year. Under the arrangement, Palantir will continue to deploy Foundry to enable “data driven performance decisions” across the Power Unit of Ferrari’s “Scuderia Ferrari” Formula 1 race team. Scuderia Ferrari will also begin featuring the Palantir brand on its Formula 1 race cars and on driver race-suits going forward, bringing the next-generation software developer’s name onto the world stage for greater commercial opportunities ahead.

The latest developments continue to bring validation to Foundry’s competency across all use cases ranging from industrials to car racing analytics. Recent deals also continue to underscore the success of Palantir’s “acquire, expand and scale” business model. Specifically, the company begins with landing its partnerships and bearing the initial costs of expanding related opportunities, then recoups the investment once they start to scale. For instance, its recent partnership with Hyundai would be categorized as the “acquire” phase, while the related commercial software development can be identified as the “expand” phase with future deployment being the “scaling” phase. Meanwhile, the recent extension of its partnerships with Satellogic and Ferrari would mark the “opportunity scaling” phase, meaning positive margins ahead.

Palantir’s growing presence within the commercial segment, especially with further expansion into new geographic regions like South Korea and EMEA with the recent appointment of Phillippe Mathieu as President of Palantir EMEA, also comes at an opportune time. The rapid acceleration of global digitization trends continues to drive a build-up of massive troves of data. And more than 80% of said data sources are expected to be “unstructured” over the next five years. To date, only 4% of companies claim to have a "highly sophisticated approach to leveraging data". This leaves a sizable addressable market within the private sector in which Palantir could penetrate.

In addition to large-scale commercial partnerships like those discussed above, the company has already deployed various strategic offerings to ensure adequate capitalization of opportunities stemming from small- and medium-enterprises (“SMEs”) while also addressing needs of emerging sectors like cryptocurrency in coming years. As discussed in our previous coverage, the recent introduction of Foundry for Builders under a subscription-based model is expected to encourage mass market adoption of the software from both multinational corporations with complex data compilations and small Day One start-ups. The recent introduction of modular offerings like "Carbon Emissions Management" and "Anti-Money Laundering / Know Your Client" solutions will also appeal to the emerging crypto sector, exposing Palantir's commercial offerings to a broader market that is expected to grow into a billion opportunity by 2026.

On the government front, Palantir’s latest public sector contract wins may be more than enough to reverse the dampened sentiment over the segment’s growth outlook following its third quarter earnings call. Recall that government segment revenues during the third quarter grew by only 34% compared to the same period in 2020. While the growth rate is still impressive, it remains a farcry from the average 74% year-over-year growth observed in the three preceding quarters.

But a turnaround is likely in order, considering the volume of new contracts and renewals acquired during the fourth quarter based on public information available. In addition to contract extensions from the Army Vantage Program and the Space System Command (“SSC”) valued at a combined total of about 0 million, Palantir has also scored new wins with the U.S. Army’s Capability Drop 2 Program (“CD-2”) valued at 3 million and with the National Institutes of Health (“NIH”) valued at million. According to public data on U.S. government spending, Palantir has been awarded with deal obligations valued at more than 8 million in 2021, with more than 4 million acquired in the fourth quarter alone. Not only does the information further support stronger fourth quarter government results ahead of its earnings call next week, but it also underscores Palantir’s continued prowess within the public sector in coming years.

Is Palantir Stock Undervalued and Can the Stock Go Back Up?

Considering Palantir’s growth outlook remains intact for both the near- and longer-term despite mounting macro headwinds, we are maintaining our 12-month price target for the stock at .45. Consistent with our previous analysis on potentially better-than-expected FY 2021 financial performance and the foregoing analysis on continued growth momentum expected across both its commercial and government segments in coming quarters, the upcoming earnings call will likely be a catalyst to jumpstarting the stock from its recent declines and bolster investors’ confidence on Palantir’s valuation prospects ahead of the upcoming rate hikes.

Yet, the climb to and beyond will likely be a turbulent ordeal in the near-term. The broader market remains sensitive to earnings based on recent observations, while investors continue to mull on how to price in the upcoming impact of tightening monetary policy on asset valuations as the process continues to unfold. As mentioned in earlier sections, Palantir's stock remains a “sucker” to broad-based market movements, but the expectation of a strong showing next week on its fourth quarter earnings call will likely give it a boost until it can emerge further with strength when there is greater clarity on the timing and magnitude of the Fed’s upcoming policy agenda later this year.

Is Palantir Stock a Buy, Sell or Hold?

With global digitization being a key trend of the current decade and beyond, data will remain “the pillar” of decision-making processes across both public and private sectors. And this will accordingly drive accelerated demand for data management and analytics software like Foundry and Gotham over the longer-term, which makes strong tailwinds for Palantir. While Palantir continues to prioritize government contracts as part of its mission to become “the U.S. government’s central operating system”, its exposure to commercial opportunities is also on a rapid rise. The stock remains an attractive long-term investment pick at the recently lowered price levels considering its advanced technological competency and growing market opportunities ahead. And with the stock’s upside momentum expected to resume next week following its fourth quarter earnings call, the recent price pullback makes a reasonable entry point.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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  • Why is Amazon price dropping?

    Revenue: 3.08 billion versus 5.06 billion expectedDiluted EPS: .12 versus .22 expectedAmazon Web Services (AWS) Revenue: .81 billion versus .18 billion expected
    3 Reasons Why Amazon Stock is Dropping

    Amazon reported a decline in third-quarter earnings after the market closed on Thursday. The e-commerce giant recorded a profit of .1 billion which came out to .23 per share. The earnings number fell short of analysts’ expectations for an EPS of .59 per share. During the same quarter in 2018, earnings were .75 per share. This was the first time Amazon’s earnings have declined on a year-over-year basis since June 2017.

    In terms of revenue, Amazon comfortably beat expectations. The company recorded sales of .98 billion, which was higher than the .83 billion that was expected. In the same quarter in 2018, Amazon had recorded .58 billion in sales.

    Earnings season is a time when investors pay close attention to hits and misses. When a company reports lower revenue and/or earnings, it can indicate an underlying problem(s) that will affect the company’s short- or long-term growth.

    So the two questions on investor's minds are why did Amazon miss on earnings, and how concerned should investors be? Here a few reasons and explanations for why they should not be that concerning.

    Amazon is spending a lot of money on one-day delivery

    Amazon has unapologetically put revenue growth ahead of profits. The company’s move towards one-day delivery for Prime members is a great example of this. However, this is costing the company money. And Amazon indicated that they anticipate to be spending even more money during the upcoming holiday season.

    “We are ramping up to make our 25th holiday season the best ever for Prime customers — with millions of products available for free one-day delivery,” Amazon Chief Executive Jeff Bezos said in Thursday’s earnings announcement. “Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers.”

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    How concerned should you be? I don’t think you need to be very concerned. The question you have to ask yourself is whether or not Amazon will start suffering a decline in revenue. Based on the traffic I see from Prime trucks in my neighborhood, I don’t see that as being very likely. And prior to the second quarter of this year, Amazon had been reporting record profits. For all of 2018, Amazon reported a record billion in profits. However, this number was more than three times its previous annual record. The company also had reported record quarterly profits in the four quarters that preceded this year’s second-quarter downturn.

    The bottom line, Amazon is a money-making machine and I don’t see that changing.

    What Are Fang Stocks 

    Amazon Web Services (AWS) is showing decelerating growth

    In their earnings report, Amazon reported that AWS (their cloud computing division) increased revenue by 35% in the third quarter. While the revenue from AWS is growing faster than at Amazon.com (which grew at 24%), the revenue growth was down from 35% in the second quarter. The 35% also marked the lowest growth for the division in over five years.

    How concerned should investors be? Slightly. This is because AWS has been the cash cow for Amazon in terms of operating income over the past four years. In the third quarter, AWS operating income was .26 billion which was 9% higher on a year-over-year basis. However, the percentage gain of 8.9% works out to the slowest growth in four-and-a-half years. Still AWS remains the dominant player in the cloud infrastructure and advertising revenue growth is accelerating faster than expected.

    The bottom line, AWS remains the go-to company as tech startups look to go public. As long as that trend continues, the long-term outlook remains solid.

    Amazon is under regulatory scrutiny

    As reported by Lisa Lacy of Adweek, anti-trust action against Amazon will be the topic of conversation as the United States moves into an election year. Sen. Elizabeth Warren, a leading contender for the Democratic nomination has a plan to break up Amazon. Warren’s plan would cut off Amazon’s Marketplace and Basics line of products from the rest of the company. In Warren’s outlook, this would undo the “damage” done by the acquisitions of Whole Foods and Zappos that Warren deems anti-competitive.  

    However, Lacy reports a more likely outcome would be to see AWS spun off as a separate company. This is the opinion of NYU marketing professor Scott Galloway and Atlantic writer Franklin Foer. Ultimately this will be Amazon’s decision. However, one reason the spin-off may happen is as a preemptive strike against regulators.

    “If the writing is on the wall and pressure is building for regulatory action … then (Amazon) might decide to do it in a way they can control,” says Matthew Wilson, an associate professor of political science at Southern Methodist University.

    How concerned should investors be? This may be the most troublesome long-term issue. Amazon has changed the retail model to one where the line between convenience and immediacy is blurred. At the same time, the more Amazon expands, the more consumers are realizing how much of their privacy they have conceded.

    At issue is Amazon’s use of the data it has on its third-party sellers as well as the increasing encroachment of Amazon’s digital assistant Alexa into consumer’s lives. For example, Alexa can theoretically become part of a refrigerator that knows if perishable items, such as milk or eggs are going to go bad and reorders them automatically from Whole Foods. No action is needed by the consumer, but the consumer also loses the choice of buying those items from other retailers.

    The bottom line, Amazon may look like a very different company in a year’s time. This would be the largest obstacle to growth.


    7 Pharmaceutical Stocks to Buy For a Healthy Portfolio in 2022One year ago, investors expected 2021 to be a huge year for pharmaceutical stocks. The bullish perspective was that as vaccines rolled out and the economy reopened, investors would shift from biotech stocks to traditional pharmaceutical stocks. But the Delta variant has kept Covid-19 top of mind for many investors. While it’s true that some pharmaceutical stocks were part of the vaccine race, other players in the space have not performed as well as was hoped. Case in point, as of October 6, 2021, the iShares U.S. Pharmaceuticals ETF (NYSEARCA:IHE) is up only 9.7% in the last 12 months. And if you bought shares of the fund at the beginning of the year, you have no growth to show for your patience. There are reasons beyond Covid-19 to consider when assessing the disappointing performance of pharmaceutical stocks. One is the current political climate which is making no secret of its desire to reshape the healthcare industry. And it has the pricing practices of “big pharma” firmly in its crosshairs. However, the pharmaceutical sector is still loaded with quality stocks for investors who are willing to accept the inherent risk. And that’s the focus of this special presentation. In the next few minutes, we’ll take a look at seven pharmaceutical stocks that are ready to make strong moves forward in 2022.

    View the "7 Pharmaceutical Stocks to Buy For a Healthy Portfolio in 2022".


    Compare These Stocks  Add These Stocks to My Watchlist 
    How and Why Amazon Changes Its Prices so Often
  • Why Amazon Stock Fell 10% in January

    02-02-2022 · Shares of Amazon ( AMZN -0.63% ) fell 10.3% in January, according to data from S&P Global Market Intelligence. The main driver for the e-commerce and cloud-computing giant stock's decline was...

    02-02-2022

    Shares of Amazon ( AMZN 0.50% ) fell 10.3% in January, according to data from S&P Global Market Intelligence.

    The main driver for the e-commerce and cloud-computing giant stock's decline was weakness in the overall market, as we'll explore in a moment.

    Red arrow pointing down overlaid on numbers.

    Image source: Getty Images.

    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.

    As the below chart shows, Amazon stock closely mirrored the Nasdaq's moves throughout the month and performed just a little worse than it did. 

    AMZN Chart

    Data by YCharts.

    The market performed poorly in January because the Federal Reserve is on track to soon begin raising interest rates. As would be expected, interest rate-sensitive stocks were hurt the most last month. This group includes growth stocks in the technology realm -- such as Amazon -- and utilities, among others. 

    Widening our time lens beyond just one month, the below chart shows how Amazon stock has performed since the start of 2020. It was a strong performer in 2020, thanks in large part to the pandemic-driven surge in online shopping. However, it struggled in 2021. Taken the two years together, along with 2022 through Feb. 1, Amazon stock has performed almost exactly the same -- just over one percentage point better, to be exact -- as the Nasdaq Composite.

    AMZN Chart

    Data by YCharts.

    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. 

    For the fourth quarter, Amazon guided for revenue of 0 billion to 0 billion, which represents growth of 4% to 12% year over year. Wall Street is expecting revenue of 7.7 billion, or growth of 9.7%. Analysts are also projecting adjusted earnings per share (EPS) will drop 73% to .74. 

    The company's bottom line was no doubt hurt by increased shipping costs stemming from supply chain issues and higher employee wages. 

    Guidance should be particularly important. You can read my earnings preview here.

    Amazon Stock Price Down 9% in 2022 - Time to Buy AMZN ...

    20-01-2022 · Amazon was the worst-performing FAANG stock in 2021. The stock underperformed the markets by a wide margin last year and 2022 is looking no better. AMZN stock is now down over 9% in 2022 and is drifting towards its 52-week lows. What’s the 2022 forecast for the stock and should buy the dip? Amazon stock recent developments

    20-01-2022

    Amazon was the worst-performing FAANG stock in 2021. The stock underperformed the markets by a wide margin last year and 2022 is looking no better.

    AMZN stock is now down over 9% in 2022 and is drifting towards its 52-week lows. What’s the 2022 forecast for the stock and should buy the dip?

    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. Several analysts downgraded the stock and it is trading sharply lower in premarkets today.

    There are a couple of reasons why Netflix’s earnings miss matters for Amazon investors. Firstly, it has dampened the sentiments towards FAANG names. Secondly, the tepid subscriber growth numbers don’t bode well for other streaming companies as well. Amazon has its own Prime streaming service under which it also gives an additional advantage of free deliveries.

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    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 7.6 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.

    Analysts expect Amazon’s adjusted EPS to fall 73% to .71 in the quarter. During the previous earnings call, the company had warned that higher expenses would take a toll on its profitability in the fourth quarter. AMZN’s CEO Andy Jassy said, “In the fourth quarter, we expect to incur several billion dollars of additional costs in our Consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs.” At the bottom end of the guidance, Amazon expects the higher costs to totally wipe off its operating profits for the quarter.

    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.

    Of the 52 analysts covering AMZN stock, 50 rate the stock as a buy while two rate it as a hold. None of the analysts have a sell or equivalent rating on the stock.

    Its median target price of ,100 implies an upside of 37% over current prices. Its lowest target price is ,473 is a premium of 16% while the highest target price of ,000 is a premium of 67% over current prices.

    Bank of America reiterated Amazon as a buy earlier this month. It said, “We have a positive outlook for 3-5 year eCommerce growth given sub-20% penetration, and, with market share gains in 2021, we see Amazon as well positioned for sector growth reacceleration in 2H′22 and into 2023.”

    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. While some of the consumer buying will revert back to brick-and-mortar stores, many consumers might stick to the e-commerce platforms given the ease, better prices, and availability of more buying choices.

    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. There is also the network effect as the availability of wider choices on the platform acts as a competitive advantage and builds high barriers of entry. The company has built a strong moat with its ecosystem which is impeccable.

    Along with the domestic markets, Amazon also allows users to buy products internationally. The company’s customer service is also a USP even as there would be the odd event of a buyer not being happy with the services. The complete ecosystem that AMZN has built is hard to replicate easily. For many people across the globe, Amazon and e-commerce are synonymous, just like internet browsing and Googling are used interchangeably.

    amazon stock has fallen

    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.

    While Amazon stock might continue to remain volatile amid the mayhem in US tech stocks, at these prices, it looks at attractive buy, especially for long-term investors.

    Amazon stock technical analysis

    While AMZN stock looks a good buy based on fundamentals, it is looking very weak on the charts and has fallen below key long-term resistance. The stock trades below all key moving averages like the 50-day, 100-day, and 200-day SMA (simple moving averages). Its 50-day SMA also risks falling below the 200-day SMA, which would mean a death cross formation.

    However, if you want to buy the stock for the long term, it would make sense to start accumulating AMZN at these prices and add more shares if the price falls further.

    Buy AMZN Stock at eToro from just Now!

    Why Amazon Stock Slipped on Friday

    21-01-2022 · Shares of e-commerce and cloud computing giant Amazon ( AMZN 2.10%) are taking a punch in the gut today. Despite the stock already having slid sharply year to date, shares fell more than 4% on Friday.

    21-01-2022

    Shares of e-commerce and cloud computing giant Amazon ( AMZN 0.45% ) are taking a punch in the gut today. Despite the stock already having slid sharply year to date, shares fell more than 4% on Friday. As of 1:25 p.m. ET, the stock was down 4.2%.

    The slide is likely primarily due to bearishness in the overall market today, especially for growth stocks like Amazon.

    A chart showing a stock price falling.

    Image source: Getty Images.

    So what

    Showing how the overall market is pessimistic on Friday, the S&P 500 is down 1.1% as of this writing. And the tech-heavy Nasdaq Composite is down 1.6%, with many growth stocks, including Amazon, down several percentage points or more.

    The market's sell-off on Friday seems to be prompted by Netflix's ( NFLX 4.12% ) post-earnings 20%-plus drop. The company's guidance for first-quarter subscribers was far below expectations, prompting concerns from investors about intensifying competition for the streaming service. Tech stocks were already facing a lot of pressure, and Netflix's hit seemed to add to market fears.

    Now what

    Amazon will soon get a chance to prove that its sell-off has gone too far. The company's fourth-quarter earnings report is scheduled for Thursday, Feb. 3, after market close. 

    The quarterly report follows a dramatic slowdown in Amazon's revenue recently. After growing first-quarter 2020 revenue 44% year over year, growth slowed to 27% in the second quarter, and then 15% in the third. 

    Management guided for further deceleration in the fourth quarter. Specifically, Amazon said it expects revenue to be between 0 billion and 0 billion, translating to 4% to 12% year-over-year quarterly growth.

    Why Shares of Amazon, Apple, and Meta Platforms Are ...

    24-01-2022 · Additionally, Amazon, Apple, and Meta Platforms investors are also processing two other bits of news that could be causing their stock prices to fall. The first is that some bond yields reached...

    24-01-2022

    Shares of Amazon ( AMZN 0.34% ), Apple ( AAPL -0.17% ), and Meta Platforms ( FB 1.12% ) were all sliding today as investors continue to dump technology stocks in anticipation that the Federal Reserve will raise interest rates throughout 2022.

    Today's drop comes as tech stocks have been tumbling since the beginning of this year as investors have processed information about rising bond yields as well.

    Amazon was down by 2.2%, Apple had dropped 2.7%, and Meta Platforms tumbled 2.8% as of 11:37 a.m. ET.

    So what 

    Technology stocks have been hit hard over the past couple of weeks as the Federal Reserve has indicated that it will begin raising interest rates this year, starting as soon as March. 

    A person looking at a phone in dismay.

    Image source: Getty Images.

    Rising rates can put pressure on consumer spending and also cause companies to borrow less money, which can hamper a company's growth. With interest rates expected to rise this year, some investors are worried that the rapid growth of tech stocks over the past couple of years may be coming to an end.

    Additionally, Amazon, Apple, and Meta Platforms investors are also processing two other bits of news that could be causing their stock prices to fall. 

    The first is that some bond yields reached nearly two-year highs last week. The two-year Treasury note topped 1% last week, the highest it's been in nearly two years. And the 10-year note hit 1.86%, the highest level since January 2020.

    The rates have since fallen a bit but still remain at elevated levels compared with last year. Higher bond yield rates generally hurt tech stock prices because it means that the company's future earnings will be worth less than they would have been if bond yields had remained lower. 

    Making matters worse is the fact that Netflix, one of the core FAANG stocks (of which Amazon, Apple, and Meta are also a part) has been tumbling since it released disappointing fourth-quarter results last week. Netflix is down 30% since the earnings release. 

    As a result of all of this, Amazon's stock is down nearly 16%, Apple has fallen 11%, and Meta Platforms has tumbled 12% since the beginning of this month. The broader market isn't doing much better, with the S&P 500 down 10% since the beginning of January.

    Now what 

    Amazon, Apple, and Meta Platforms investors may want to brace for a bit more volatility, at least in the short term. The Fed will finish its policy meeting on Wednesday, and any new information about interest rates that's released from that meeting could cause a market reaction.

    But long-term investors should be less concerned about what the Fed is doing. Nothing has fundamentally changed with Amazon's, Apple's, or Meta Platforms' underlying businesses over the past several weeks.

    Panic selling based on higher bond yields or rising interest rates could leave investors missing out on the long-term gains that investors with cooler heads could experience in the coming years.

    This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

    moneymorning.com

    31-01-2014 · The Nasdaq placed a short-sell restriction on Amazon (Nasdaq: AMZN) stock after it dropped 10%. Here’s why that’s good news for long-term investors.

    31-01-2014

    Amazon.com Inc. (Nasdaq: AMZN) stock has dropped 10% today (Friday) prompting the Nasdaq to implement a short-sale restriction on the stock.

    The short-sale restriction is triggered when a stock falls 10% in one trading session from the previous session's closing price. The restriction aims to prevent share-price manipulation by short sellers.

    The sell-off began after Thursday's earnings release when AMZN reported earnings per share (EPS) of

    .51 on revenue of .59 billion, which was well below analysts' estimates of

    .66 per share on revenue of .06 billion.

    But analysts' projections were lofty. The consensus EPS projection was an incredible 268% higher than what AMZN had posted the previous year.

    In fact, yesterday Amazon reported an increase of 148% in EPS year over year. And AMZN reported .45 billion in revenue for the entirety of 2013, which was 22% higher than in 2012.

    But this AMZN plunge doesn't mean the stock will disappoint in 2014...

    Why to Buy AMZN Stock

    A minor blip in stock performance would have been one thing, but a 10% sell-off in one day following yesterday's earnings is surprising. Obviously, Amazon fell short of expectations, but it still posted strong numbers.

    Note: The American energy boom will bring a new era of millionaires - but the biggest profits won't be in the most obvious places. Here are three "hidden" ways to play energy now.

    According to Money Morning's Defense & Tech Specialist Michael Robinson, this 10% drop offers an excellent buy-in point for investors.

    Robinson appeared on FOX Business' "Varney & Co." today and was asked what he'd do with Amazon stock if it keeps falling - maybe as low as 0.

    "[0 a share] is a great price for Amazon. It's an excellent company. I'm not sure that Wall Street's expectations were in alignment with reality," Robinson said. "What no one's talking about is the 53% increase in the division that includes cloud sales to more than

    .2 billion, which is enormous. Overall I think it was a pretty good report."

    In 2013, AMZN stock posted an impressive 63% gain. The stock has come back to Earth a bit in 2014 - currently trading at 4 as of 2:00 pm EST today.

    There's no denying that it was a tough year for silver in 2013. But Peter Krauth has found two bullish signs that point to a 1,000% gain for the precious metal...

    AMZN Stock: Amazon Is Changing for the Better

    10-02-2022 · Amazon's new projects appear to be progressing well. Additionally, the valuation of AMZN stock is relatively attractive.

    10-02-2022

    The continued strength of Amazon’s (NASDAQ:AMZN) Amazon Web Services (AWS) unit and the company’s promising new initiatives are among the factors that are keeping me very bullish on the long-term outlook of AMZN stock.

    Amazon (AMZN) logo on a corporate building
    Source: Jonathan Weiss / Shutterstock.com

    The company’s decision to buy back a huge amount of its shares and the reasonable valuation of its stock, along with its decision to increase its Prime membership fee, also make me upbeat on the name.

    AWS Is Continuing to Perform Well for AMZN Stock

    The revenue of the conglomerate’s AWS unit, which provides cloud infrastructure to enterprises, jumped to .78 billion in the fourth-quarter, up from .7 billion during the same period a year earlier. AWS’ fourth-quarter (Q4) sales also easily beat analysts’ average estimate of .23 billion.

    Meanwhile, in Q4, overall global spending on the cloud jumped 34% year-over-year — according to research firm Canalys — and AWS retained its leading 33% share of the sector, another research firm, Synergy Research Group, stated.

    In light of these numbers, I believe that AWS performed very well in Q4, while the unit’s top and bottom lines are likely to continue to surge going forward.

    Exciting and Progressing New Initiatives

    On Feb. 8, Amazon announced that it is rolling out its telehealth offering throughout the U.S. Further, the company stated that it would bring “its in-person care arm” to up to 20 American cities in 2022, versus just eight currently.

    During the last decade of Jeff Bezos’ tenure as the company’s chief executive officer (CEO), I don’t recall it moving nearly this quickly to launch complicated, new projects like these healthcare services. Obviously, it will be important to see how the company executes on these initiatives.

    But the fact that it is rolling them out so rapidly makes me more confident in my thesis that the company’s new undertakings will be launched much faster under its new CEO, Andy Jassey, than it did from 2011 – 2021.

    Not only do I believe that the company’s healthcare projects will — if executed well — meaningfully improve its financial results on their own, but I think they will indirectly and meaningfully increase the utilization of its e-commerce services and hardware products. That is because, as Americans utilize the company’s healthcare services, they will probably visit its website much more often, making them much more likely to buy other products from the company.

    Under Jassey, the company is also determinedly pursuing other exciting projects. Among them is the potential game-changing initiatives that the company has recently announced are the expansion of its smart home management system — Matter — and a “personal robot.” Again, if these undertakings are successful, I believe that they can meaningfully increase Amazon’s ability to sell many other e-commerce products, boosting AMZN stock in the process.

    Finally, Amazon has recently announced major investments in two highly promising transportation technology companies — Velodyne Lidar (NASDAQ:VLDR) and Aurora Innovation (NASDAQ:AUR).

    Velodyne develops lidar sensors used in self-driving systems, while Aurora develops self-driving systems for trucks. With these investments, along with the large amount of money that it ploughed into electric vehicle (EV) maker Rivian (NASDAQ:RIVN), Amazon has ensured that it will be at the forefront of multiple, key transportation technology trends. In the long run, that should help it retain its dominance in the e-commerce sector.

    Prime Membership Fee Increase and Share Buybacks

    The company’s decision to increase its annual, undiscounted Prime membership fee by can, I believe, prove to be quite beneficial for it. That will be particularly true if the company reinvests a meaningful portion of the additional funds in enhanced services, including better delivery performances, for Prime members.

    Such investments should, over the long-term, enable the company to prevent Prime members from dropping the service and entice meaningfully more consumers to join it. And, since Prime members tend to buy more products from the company, accelerating the enhancements of Prime should greatly improve Amazon’s e-commerce results.

    On the buyback front, the conglomerate recently bought back

    .3 billion of its shares, marking the first time it has repurchased AMZN stock in a decade. That decision should get Wall Street more excited about the shares going forward, providing a strong, positive catalyst for the name.

    The Bottom Line on AMZN Stock

    Like most e-commerce businesses, the performance of Amazon’s e-commerce unit has deteriorated as the pandemic has eased.

    But I believe that the company’s new initiatives should, over time, greatly improve the unit’s performance. Meanwhile, the AWS division remains a juggernaut, while the company’s share buybacks are a meaningful, positive catalyst for the stock.

    Finally, AMZN stock is trading at a relatively low (for a strong, growing tech company) price/sales ratio of 3.65. Given all of these points, I recommend that conservative investors looking for exposure to a large tech company buy the shares.

    On the date of publication, Larry Ramer held a long position in AUR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

    Larry Ramer has conducted research and written articles on U.S. stocks for 14 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been Ford, solar stocks, and Exxon. You can reach him on StockTwits at @larryramer.

    Buy, Sell or Hold: Amazon.com (AMZN-Q) — Stock Predictions ...

    He's long Walmart and Amazon. The latter had ridiculous comps coming out of Covid, but have finally cleared those comps. Amazon is the top megacap tech stock. Amazon will benefit from Christmas buying. Walmart has underperformed 40% over one-year. The PE is not demanding. Food inflation actually benefits them. Walmart gets zero credit for its e-commerce.

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    Ranking : 5 out of 5

    Bullish - Buy Signals / Votes : 32

    Neutral - Hold Signals / Votes : 2

    Bearish - Sell Signals / Votes : 1

    Total Signals / Votes : 35

    Stockchase rating for Amazon.com is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

    Amazon.com is a American stock, trading under the symbol AMZN-Q on the NASDAQ (AMZN). It is usually referred to as NASDAQ:AMZN or AMZN-Q

    Is Amazon.com a buy or a sell?

    In the last year, 35 stock analysts published opinions about AMZN-Q. 32 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Amazon.com.

    Is Amazon.com a good investment or a top pick?

    Amazon.com was recommended as a Top Pick by on . Read the latest stock experts ratings for Amazon.com.

    Why is Amazon.com stock dropping?

    Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

    Is Amazon.com worth watching?

    35 stock analysts on Stockchase covered Amazon.com In the last year. It is a trending stock that is worth watching.

    What is Amazon.com stock price?

    On 2021-12-17, Amazon.com (AMZN-Q) stock closed at a price of 00.35.

    4 reasons why Amazon stock is getting nailed

    Recall that a year ago at this time Amazon was posting mind-blowing sales gains as the pandemic kept consumers inside and ordering online to an extent never seen before. Amazon execs …

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    Why Amazon.com Stock Dropped Again Today

    01-11-2021 · Shares of e-commerce giant Amazon.com ( NASDAQ:AMZN) stock took a hit Monday, falling 2.1% through 3 p.m. EDT. In the absence of bad news to explain the drop, I …

    01-11-2021

    Shares of e-commerce giant Amazon.com (NASDAQ:AMZN) stock took a hit Monday, falling 2.1% through 3 p.m. EDT.

    In the absence of bad news to explain the drop, I am forced to conclude that Amazon stock is dropping today because of...good news.

    Glowing red stock chart arrow trending down.
    Image source: Getty Images.

    So what

    Specifically, the news that more than two years after it first revealed plans to build its own constellation of broadband internet satellites, Amazon is finally getting "Project Kuiper" off the ground. 

    The news broke this morning: Amazon has hired space launch start-up ABL Systems to launch two Project Kuiper satellites "by Q4 2022" atop ABL's "all-new RS1 rocket." Amazon seems excited by the development. According to a statement on the Amazon News website: 

    These satellites—KuiperSat-1 and KuiperSat-2—are an important step in the development process. They allow us to test the communications and networking technology that will be used in our final satellite design, and help us validate launch operations and mission management procedures that will be used when deploying our full constellation.

    Over time, Amazon expects this to develop into "a long-term relationship" as ABL helps Amazon get the rest of its planned 3,236 satellites off the ground and into orbit around the Earth.

    Now what

    Now what could possibly be wrong with all that? Three problems spring to mind:

    First and foremost, the fact that Amazon has chosen ABL as its partner emphasizes the fact that more than two decades after its foundation, Amazon founder Jeff Bezos's own space company, Blue Origin, which has no official connection to Amazon.com, still isn't capable of launching a satellite into orbit.

    Second, the fact that Amazon is picking a 2022 launch date with ABL suggests Blue Origin still won't be able to reach orbit for more than a year. And the fact that Amazon has chosen to partner with a start-up with no history of successful rocket-launching creates the risk that these satellites won't launch even by 2022 on any rocket at all.

    Third and finally -- and related to the first two reasons -- is the fact that Amazon is beginning this space race far behind its biggest rival in space, SpaceX. To date, SpaceX has launched more than 1,700 of its own Starlink satellites into orbit, helping to lift the company to a 0 billion market capitalization. Part of the reason SpaceX is worth so much, of course, is because it can use its own rocket ships to put its own satellites in orbit, dramatically lowering its costs in comparison to companies that cannot use their own rocket ships to put their own satellites into orbit.

    Companies like Amazon.com.

    So long as SpaceX retains this advantage, I fear Project Kuiper has little chance of success and is doomed to be a money pit for Amazon.com and its shareholders.

    Here Are 3 Key Reasons Amazon Stock Is Set to Decline

    However, the meteoric rise of AMZN stock is now coming to an end. The company has faced plenty of criticism over the years from investors, primarily due to low profitability. That’s been ...

    Amazon (NASDAQ:AMZN) has been on an unstoppable winning streak for many years now. The company has brushed aside all sorts of concerns about overvaluation and poor profitability. The move into Amazon Web Services in particular truly catapulted AMZN stock to its spot among the world’s most valuable investments.

    Amazon (AMZN) logistics center in Szczecin, Poland.

    Source: Mike Mareen / Shutterstock.com

    It’s also made fortunes. Jeff Bezos is the world’s wealthiest man, and his ex-wife, MacKenzie Scott, is now the world’s richest woman, thanks to her large Amazon stock position resulting from the divorce. It’s not just the insiders either; Amazon has created countless millionaires among investors.

    However, the meteoric rise of AMZN stock is now coming to an end. The company has faced plenty of criticism over the years from investors, primarily due to low profitability. That’s been overcome with continuing strong revenue growth. But bigger issues are emerging.

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    Amazon has growing employee unrest, government regulators smell blood, and meanwhile, numerous e-commerce rivals have sprung up and are now attacking some of the company’s most profitable niches.

    1. Rising Employee Strife and AMZN Stock

    Amazon is having increasingly tense relations with its employees. It already was a focal point in the battle for a /hour minimum wage. And following the novel coronavirus, employees want much more. Ex-employee Chris Smalls, who claims Amazon wrongly fired him, is now leading a collective bargaining movement for employees.

    In a recent interview, Smalls laid out their agenda:

    “Our demands are simple […] /hour, as far as minimum wage. We feel the cost of living is going up, this company’s revenue is going up. This company made an abundance of billions of dollars off the profit of people, at the expense of our backs. So we would like to have a decent living wage.”

    Smalls didn’t stop there. He says Amazon needs to provide free health care and child care for workers. Additionally, he says that Amazon must provide 0,000 in compensation for each Amazon worker that died during Covid-19 due to the company’s allegedly unsafe work environment and lack of preventative measures to stop the spread of the virus.

    Investors may try to ignore this. However, it’s becoming increasingly serious. Smalls’ group recently set up a guillotine outside of one of Bezos’ houses in a dramatic protest. Additionally, reporters recently exposed the fact that Amazon is paying tons of money to spy on its employees in an effort to keep them from unionizing. Needless to say, this is a terrible look for Amazon, and could both irritate the public and draw hostile regulation from politicians.

    1. Antitrust Concerns

    Amazon has been a bipartisan target for criticism. Democratic politicians such as Bernie Sanders and Andrew Yang have blasted Amazon for paying insufficient wages while destroying malls and Main Street businesses.

    Meanwhile, the Trump Administration has launched investigations into the big tech companies, including Amazon. It’s also no secret that Jeff Bezos and President Trump have some animosity toward each other.

    However, through the pandemic, Amazon had largely avoided any actual consequences for their perceived monopoly position in online retail. That may change though. While the pandemic has accelerated Amazon’s market share gains, it has also amplified criticism that the company is too powerful.

    Amazon’s latest move — turning failing malls into distribution centers — is drawing particular ire. With Amazon having crushed many local towns and cities’ tax bases, look for politicians to force Amazon to pay up for its past anti-competitive behavior.

    3. Rising E-Commerce Competition

    The one ray of good news on the anti-trust front is that Amazon is starting to lose share in many e-commerce niches. Actually, that may be bad news too though, in the broader AMZN stock outlook. Over the past six months, a ton of e-commerce stocks such as Shopify (NYSE:SHOP), Etsy (NASDAQ:ETSY) and Chewy (NYSE:CHWY) have positively blasted off.

    All these sites serve verticals that Amazon could dominate. Instead, Amazon is losing ground to niche competition left and right. It’s also getting crushed in the grocery wars, as the Whole Foods acquisition appears to be a lemon.

    Turns out, rivals aren’t just going to let Amazon eat the whole internet without a fight. While this may keep the antitrust regulators at bay a little longer, it’s still not great for Amazon’s share price. When investors are betting on Amazon remaining invincible indefinitely, any sort of mishap can cause the share price to slide.

    AMZN stock sells for such an absurdly high multiple that it would take nearly miraculous execution from the management team to warrant a higher share price once the Covid-19 tailwinds are gone. And instead, large chunks of the total addressable market are disappearing as sites like Shopify and Etsy are enjoying historic growth this year.

    AMZN Stock Verdict

    None of these three factors will necessarily sink AMZN stock tomorrow. The company has several potential catalysts that could still power shares higher as well.

    At any point, Bezos could copy his peers at Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) and issue a stock split. This might drive up the stock price. Furthermore, the lingering effects of the pandemic may lead to a strong holiday season for Amazon.

    Regardless, huge headwinds will soon slow down Amazon’s rise. After rising sixfold since 2016, look for Amazon stock to deliver far less impressive returns going forward.

    In fact, the unthinkable may happen; AMZN stock could even go down as these pitfalls trip the company up. Both the company and its shareholders have become complacent after years of unbridled success. That’s a risky place to be in the fast-changing world of commerce.

    On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article.

    Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a 0 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

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    The post Here Are 3 Key Reasons Amazon Stock Is Set to Decline appeared first on InvestorPlace.

    Here's Why Amazon Stock Plunged Today

    30-07-2021 · 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 3.1 …

    30-07-2021

    Shares of Amazon.com (NASDAQ:AMZN) 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 3.1 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. Amazon's "other" segment, which is mostly comprised of advertising-related sales, saw even more impressive gains, with revenue rising a blistering 87%.

    The strong performances of these high-margin businesses helped Amazon's net income soar 50% to .8 billion, or .12 per share. That was well above Wall Street's consensus estimate for earnings per share of .30. 

    Finger pointing to a red and green stock chart that rises sharply and then falls.
    Amazon.com's shares sank on Friday. Image source: Getty Images.

    Still, investors appeared to focus on Amazon's subdued guidance. Management sees revenue growth decelerating to between 10% and 16% in the third quarter as Amazon laps the torrid gains it experienced during the early stages of the coronavirus crisis. 

    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. 

    Amazon's planned investments in its fulfillment network could also weigh on its profits in the second half of the year. Investors, however, should note that it's these types of investments that have helped the company achieve its dominant competitive position in the online retail and cloud infrastructure markets. Moreover, Amazon's current spending is likely to further strengthen its advantages over its rivals, thereby boosting its long-term profit potential. 

    As a result, patient investors may wish to view today's sell-off as an opportunity to buy shares in this e-commerce and cloud titan at a sizable discount.

    Why Is Amazon (AMZN) Down 9.3% Since Last Earnings Report?

    Amazon Web Services (“AWS”) revenues (10% of sales) rose 28% year over year to .7 billion. Robust performance delivered by Amazon during …

    A month has gone by since the last earnings report for Amazon (AMZN). Shares have lost about 9.3% in that time frame, underperforming the S&P 500.

    Will the recent negative trend continue leading up to its next earnings release, or is Amazon due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

    Amazon's Q4 Earnings & Revenues Beat Estimates

    Amazon.com reported fourth-quarter 2020 earnings of .09 per share, beating the Zacks Consensus Estimate by 99.8%. The bottom line also improved 117.8% from the year-ago quarter and 13.9% from the previous quarter.Net sales of 5.6 billion comfortably surpassed the Zacks Consensus Estimate of 0.4 billion and exceeded management’s guidance of 2-1 billion. Further, the figure increased 44% on a year-over-year basis and 30.6% sequentially.North America revenues (60% of sales) advanced 40.3% from the year-ago quarter to .3billion. International revenues (30% of sales) climbed 57.3% year over year to .5 billion. Amazon Web Services (“AWS”) revenues (10% of sales) rose 28% year over year to .7 billion.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.Moreover, the coronavirus pandemic-induced continuous surge in online shopping contributed well. We note that the company’s online store sales rose46% from the prior-year quarter.Additionally, strengthening relationships with third-party sellers remained a major positive. In the fourth quarter, sales generated by these sellers rose 57% on a year-over-year basis.Further, strong momentum across Prime members remained a tailwind. The company’s subscription services delivered robust performance during the reported quarter. Sales from these services went up 35% from the prior-year quarter.Furthermore, solid AWS momentum and strengthening smart devices offerings continued to benefit the company’s fourth-quarter performance.The company’s strong global presence, growing Prime momentum, expanding data center network and increasing number of AWS regions, improving Alexa skills, expanding smart devices portfolio, and growing efforts toward gaining strong traction among small and medium businesses are likely to drive its near-term financial performance.

    With the release of fourth-quarter results, the company also announced the transition in the role of Jeff Bezos to the position of Executive Chair. Notably, Jeff Bezoz will be stepping down from his current CEO role in third-quarter 2021 and Andy Jassy will become the new CEO.

    Retail & Prime Momentum

    Amazon’s aggressive retail strategies continued to benefit its fourth-quarter results. Expanding the fulfillment network and ultrafast delivery services contributed well.The opening of Amazon Fresh grocery stores in Irvine, CA, Schaumburg, IL, North Hollywood, CA, Ladera Heights, CA, Naperville, IL, Northridge, CA and Whittier, CA, bolstered the company’s physical retail presence as well as grocery retail footprints.Further, the unveiling of the online store for prescription medicines namely Amazon Pharmacy in integration with its PillPack buyout remained noteworthy. The store offers afree two-day delivery service to Prime members.Additionally, the company boosted its fashion retail efforts by introducing a service —Made for You, which allows shoppers to create a customized T-shirt according to their exact measurements.Further, a huge success in the company’s Great Indian Festival event contributed well. Notably, it witnessed strong momentum across small and medium businesses. Customers made purchases from above 110,000 such sellers during the event.Apart from this, solid momentum across Prime Video remained a major tailwind in the reported quarter. Expanding original content and overall content portfolio on Prime Video continued to accelerate the Prime engagement further.We note that Prime Video premiered new and returning seasons ofits original series and specials namely What the Constitution Means to Me, The Pack, Small Axe, Utopia, The Wilds, The Expanse, Yearly Departed, and the final season of Vikingsduring the reported quarter.Also, the company bolstered its original movie content library with Borat Subsequent Moviefilm, Uncle Frank, Sylvie’s Love, Sound of Metal and I’m Your Woman.Further, it strengthened its country-wise Amazon Originals content portfolio by streaming The Challenge: ETA, BILD.Macht.Deutschland?, FERRO, El Cid, Binge Reloaded, Truth Seekers, The Bachelorette, Mirzapur, Locaspor el Cambio, The Grand Tour: A Massive Hunt, and All or Nothing: Tottenham Hotspur.

    Additionally, Amazon witnessed strongest growth in its viewership forlive sports streaming in the reported quarter. Live streaming of San Francisco 49ers vs. Arizona Cardinals game, Premier League football, NFL regular season game, and Autumn Nations Cup tournament helped the company in attracting Prime members.

    Expanding AWS Portfolio: A Key Catalyst

    AWS, which witnessed solid growth in the topline, continued to gain strong customer momentum in the coronavirus-hit fourth quarter, courtesy of its highly reliable services portfolio.During the reported quarter, AWS rolled out a cloud-based healthcare service called Amazon HealthLake. Further, it unveiled Amazon DevOps Guru, which improves application availability by using ML services.Additionally, the company rolled out five industrial ML services namely, Amazon Monitron, Amazon Lookout for Equipment, the AWS Panorama Appliance, the AWS Panorama SDK, and Amazon Lookout for Vision.Further, AWS made Amazon Managed Workflows for Apache Airflow generally available. Furthermore, the company announced the general availability of AWS Network Firewall, which is a new service, well-equipped to protect against common network threats.Also, AWS unveiled Mac instancesfor Amazon Elastic Compute Cloud (Amazon EC2). Also, it introduced nine capabilities for Amazon SageMaker, five new capabilities for Amazon Connect and four new container services.Furthermore, the company rolled out Amazon QuickSight Q, AWS Glue Elastic Views and Aurora Serverless v2 among others.On the heels of expanding services portfolio, AWS experienced strong growth in its clientele with the addition of Thomson Reuters, Metro Goldwyn Mayer, ViacomCBS, Boom Supersonic, MercadoLibre, Zalando, Nationwide, Twitter, Star Alliance, Standard Chartered Bank, Arm Holdings, Zoom and Itau Unibanco, to name a few.

    Also, extended relationships with Carrier Global and BlackBerry remained positives.

    Alexa, Smart Devices Offering & Self-Driving Space

    Amazon continued to enhance the skills and features of Alexa in the reported quarter. Introduction of multilingual feature, new Alexa Routines on Fire TV, Alexa Custom Assistant, and a new capability that helps in making Alexa more natural remained positives.Further, Amazon made Ring’s new Mailbox Sensor generally available to customers. It also rolled out Customizable Motion Zones for all battery-powered Ring Video Doorbells and Security Cameras.Additionally, the company’s growing momentum across Fire TV, whose monthly active user base has exceeded the mark of 50 million, remained a tailwind. Also, winning content deals with streaming providers such as HBO Max, discovery , and Xfinity in the U.S., Disney in Mexico and Brazil, NOW TV in the UK and CANAL in France contributed well.

    Apart from these, Amazon gained strong traction in the autonomous driving space with the first look of Zoox’s fully functional, electric, autonomous vehicle.

    Quarter in Detail

    Product sales (56.6% of sales) increased 40.6% year over year to .1 billion. Service sales (43.4% of sales) rose 47.7% from the year-ago quarter to .5 billion.Operating expenses were 8.7 billion, up 42% from the year-ago quarter. As a percentage of revenues, the figure contracted 110 bps on a year-over-year basis to 94.5%.Cost of sales, fulfillment, technology & content, marketing and general & administrative expenses increased 46.9%, 51.5%, 23.7%, 19.9% and 39.4% to .3 billion, .5 billion, .05 billion, .4 billion and

    .9 billion, respectively, on a year-over-year basis.Other operating income was 6 million in the reported quarter compared to expenses of million in the year-ago quarter.Overall operating income increased 77.2% from the year-ago quarter to .9 billion. Further, the operating margin expanded 110 bps from the year-ago quarter to 5.5%.Operating income for AWS was .6 billion, up 37.3% year over year. Further, the same for North America improved 55.1% from the prior-year quarter to .9 billion.

    Further, the International segment reported an operating income of 3 million against a loss of 7 million in the year-ago quarter.

    Balance Sheet & Cash Flow

    As of Dec 31, 2020, cash and cash equivalents were .1 billion compared with .9 billion as of Sep 30, 2020. Further, marketable securities totaled .3 billion at the end of the fourth quarter, up from .5 billion at the end of the third quarter.Long-term debt was .8 billion in the reported quarter compared with .9 billion in the previous quarter.Further, the company generated .4 billion of cash from operation in the fourth quarter, which was up from .9 billion in the prior quarter.

    On a trailing twelve month basis, free cash flow came in at .02 billion in the reported quarter, up from .5 million in the prior quarter.

    Guidance

    For first-quarter 2021, Amazon expects net sales between 0 billion and 6 billion. The figure is anticipated to improve 33-40% on a year-over-year basis.Management projects a favorable foreign exchange impact of 300 bps.Proceeds from operational activities are likely to range from operating income of billion to .5 billion.

    This guidance is inclusive of more than billion costs related to COVID-19.

    How Have Estimates Been Moving Since Then?

    It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 12.92% due to these changes.

    VGM Scores

    Currently, Amazon has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

    Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

    Outlook

    Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Amazon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


    Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 

    To read this article on Zacks.com click here.

     

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    AMZN Stock | News | AMAZON Stock Price Today

    On the 20th anniversary of the IPO Amazon stock closed at 1.35, giving the company a market value of about 6.2 billion. That's 490 times its split-adjusted stock price. That's 490 times its...

    Loading..
    Date Open Close Daily High Daily Low

    Price change over selected period: 0% 0

    Total Analysts: 100

    Buy Ratings: 100 Neutral Ratings: 0 Sell Ratings: 0

    Analyst: {}
    Price-Target: {}
    Rating: {}

    Price *Price Target

    Lowest: 2,525.00 Median: 3,831.30 Highest: 5,500.00

      2021 2022 2023 2024 2025
    Revenue 470,482 552,785 649,083 733,947 836,771
    Dividend 0.00 0.00 0.00 - -
    Dividend Yield (in %) - - - - -
    EPS 41.11 51.37 76.68 110.21 147.56
    P/E Ratio 63.92 50.30 36.68 27.60 21.25
    EBIT 24,076 33,030 51,073 72,805 95,669
    EBITDA 68,967 83,413 107,521 138,339 170,050
    Net Profit 21,116 27,232 41,847 58,839 79,429
    Net Profit Adjusted 32,430 37,108 53,872 65,721 82,603
    Pre-Tax Profit 25,856 32,957 52,758 75,766 98,876
    Net Profit (Adjusted) 25,776 32,281 52,425 76,384 100,960
    EPS (Non-GAAP) ex. SOE 51.27 60.73 85.58 117.22 -
    EPS (GAAP) 41.11 51.37 76.68 110.21 147.56
    Gross Income 195,908 234,063 280,427 322,354 362,159
    Cash Flow from Investing -56,996 -56,022 -63,527 -54,875 -57,004
    Cash Flow from Operations 61,459 87,105 114,878 142,051 171,914
    Cash Flow from Financing 3,570 -4,842 -7,031 -625 0
    Cash Flow per Share 120.46 143.95 192.46 306.94 369.31
    Free Cash Flow 12,695 38,472 57,255 75,221 100,132
    Free Cash Flow per Share 26.61 64.71 99.23 171.01 224.67
    Book Value per Share 258.85 336.62 441.72 591.36 744.12
    Net Debt -19,483 -32,192 -69,461 -177,857 -252,230
    Research & Development Exp. 49,919 62,173 68,877 79,562 85,016
    Capital Expenditure 52,648 52,572 59,842 63,293 56,997
    Selling, General & Admin. Exp. 172,376 201,829 235,344 - -
    Shareholder’s Equity 126,306 169,016 233,250 306,484 411,449
    Total Assets 400,647 464,995 559,671 652,412 788,986
      Previous Quarter
    ending 09/30/21
    Current Quarter
    ending 12/31/21
    Next Quarter
    ending 03/31/22
    Current Year
    ending 12/31/21
    Next Year
    ending 12/31/22
    Earnings Estimates
    No. of Analysts 43 43 32 45 45
    Average Estimate 8.898 USD 3.747 USD 10.349 USD 41.115 USD 51.369 USD
    Year Ago 12.370 USD 14.090 USD 15.790 USD 41.830 USD 41.115 USD
    Publish Date 10/28/2021 2/3/2022 4/28/2022 - -
    Revenue Estimates
    No. of Analysts 41 41 30 44 43
    Average Estimate 111,551 USD 137,834 USD 121,877 USD 470,482 USD 552,785 USD
    Year Ago 96,145 USD 125,555 USD 108,518 USD 386,064 USD 470,482 USD
    Publish Date 10/28/2021 2/3/2022 4/28/2022 - -

    * Average Estimates in Million (e.g. Revenue) or per share (e.g. Dividend). Source: FactSet

    *Yield of the Respective Date

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    258.85

    120.46

    Amazon. com, Inc. engages in the provision of online retail shopping services. It operates through the following business segments: North America, International, and Amazon Web Services (AWS). The North America segment includes retail sales of consumer products and subscriptions through North America-focused websites such as www. amazon. com and www. amazon.

    In 1997 when Amazon first filed for its initial public offering, the company was just three years old and had no clear path to profitability. It faced a growing list of competitors that included Simon & Schuster and Barnes & Noble, each of which was already selling books online. (read more)

    Risk

    Moody’s Daily Credit Risk Score is a 1-10 score of a company’s credit risk, based on an analysis of the firm’s balance sheet and inputs from the stock market. The score provides a forward-looking, one-year measure of credit risk, allowing investors to make better decisions and streamline their work ow. Updated daily, it takes into account day-to-day movements in market value compared to a company’s liability structure.

    Owner in %
    Freefloat 86.75
    The Vanguard Group, Inc. 6.40
    Vanguard Group, Inc. (Subfiler) 6.20
    Mackenzie T Bezos 3.44
    T. Rowe Price Associates, Inc. (Investment Management) 3.23
    State Street Corp. 3.22
    Fidelity Management & Research Co. LLC 2.43
    Vanguard Total Stock Market Index Fund 2.40
    BlackRock Institutional Trust Co. NA 1.85
    BlackRock Fund Advisors 1.67
    Geode Capital Management LLC 1.38
    Northern Trust Corp. 0.98
    Norges Bank (13F) 0.90
    Government Pension Fund - Global (The) 0.88
    Capital Research & Management Co. (Global Investors) 0.79

    Shareholder percentage totals can add to more than 100% because some holders are included in the free float.

    Name Job
    Dave Clark Chief Executive Officer-Worldwide Consumer
    Brian T. Olsavsky Chief Financial Officer & Senior Vice President
    Edith W. Cooper Director
    Randy Bradley Director
    Jeffrey P. Bezos Executive Chairman
    Joshua Huang Head-Business Development, Amazon Fresh Stores
    Ali Farahani Head-Physical Stores Real Estate Expansion
    Daniel P. Huttenlocher Independent Director
    Indra Krishnamurthy Nooyi Independent Director
    Jamie S. Gorelick Independent Director
    Judith A. McGrath Independent Director
    Keith Brian Alexander Independent Director
    Patricia Q. Stonesifer Independent Director
    Thomas O. Ryder Independent Director
    Wendell P. Weeks Independent Director
    Dave Fildes Investor Relations Contact
    Jonathan Jake Rubinstein Lead Independent Director
    Pietro Oriani Partner
    Andrew R. Jassy President, Chief Executive Officer & Director
    Steven Soloway Program Manager
    Joanthan Waldron Real Estate Head
    David A. Zapolsky Secretary, Senior Vice President & General Counsel
    Emily Iacolo Senior GIS Manager
    Ryan Slemons Senior Manager-Real Estate
    Charlie Lohr Senior Pre-Construction Manager
    Alexander Ragonese Senior Real Estate Manager
    Jeffrey A. Gaither Senior Real Estate Manager
    Stephen Smith Senior Real Estate Manager
    W. Paul Rowley Senior Real Estate Manager-Amazon 4Star, Books
    Amit Agarwal Senior VP & Country Manager-Amazon India
    Peter DeSantis Senior Vice President-AWS Infrastructure & Support
    Paul Kotas Senior Vice President-Advertising, Music & IMDb
    Tom Taylor Senior Vice President-Alexa Management
    David A. Limp Senior Vice President-Amazon Devices & Services
    Jeff M. Blackburn Senior Vice President-Business Development
    Jay Carney Senior Vice President-Corporate Affairs
    Alicia S. Boler-Davis Senior Vice President-Global Customer Fulfillment
    Beth Galetti Senior Vice President-Human Resources
    Russ Grandinetti Senior Vice President-International Consumer
    Doug Herrington Senior Vice President-North America Consumer
    Charlie Bell Senior Vice President-Utility Computing Services
    Lori Jordan Strategic Product Leader
    Peter A. Krawiec VP-Worldwide Corporate & Business Development
    Rohit Prasad Vice President & Head Scientist-Alexa
    Shelley L. Reynolds Vice President & World Wide Controller
    Kelly Jo MacArthur Vice President Legal & Associate General Counsel
    Matt Garman Vice President-AWS Sales & Marketing
    Mark Eamer Vice President-Advertising, Product & Media
    Ned Curic Vice President-Alexa Automotive
    Christine M. Beauchamp Vice President-Amazon Fashion
    Seth Dallaire Vice President-Global Advertising Sales
    Colleen Aubrey Vice President-Performance Advertising
    Neil Lindsay Vice President-Worldwide Prime & Marketing
    Here Are 3 Key Reasons Amazon Stock Is Set to Decline

    11-09-2020 · AMZN stock faces rising risks. Labor strife, antitrust concerns, and improving e-commerce niche sites all loom as hazards for the company.

    11-09-2020

    Amazon (NASDAQ:AMZN) has been on an unstoppable winning streak for many years now. The company has brushed aside all sorts of concerns about overvaluation and poor profitability. The move into Amazon Web Services in particular truly catapulted AMZN stock to its spot among the world’s most valuable investments.

    Amazon (AMZN) logistics center in Szczecin, Poland.
    Source: Mike Mareen / Shutterstock.com

    It’s also made fortunes. Jeff Bezos is the world’s wealthiest man, and his ex-wife, MacKenzie Scott, is now the world’s richest woman, thanks to her large Amazon stock position resulting from the divorce. It’s not just the insiders either; Amazon has created countless millionaires among investors.

    However, the meteoric rise of AMZN stock is now coming to an end. The company has faced plenty of criticism over the years from investors, primarily due to low profitability. That’s been overcome with continuing strong revenue growth. But bigger issues are emerging.

    Amazon has growing employee unrest, government regulators smell blood, and meanwhile, numerous e-commerce rivals have sprung up and are now attacking some of the company’s most profitable niches.

    1. Rising Employee Strife and AMZN Stock

    Amazon is having increasingly tense relations with its employees. It already was a focal point in the battle for a /hour minimum wage. And following the novel coronavirus, employees want much more. Ex-employee Chris Smalls, who claims Amazon wrongly fired him, is now leading a collective bargaining movement for employees.

    In a recent interview, Smalls laid out their agenda:

    “Our demands are simple […] /hour, as far as minimum wage. We feel the cost of living is going up, this company’s revenue is going up. This company made an abundance of billions of dollars off the profit of people, at the expense of our backs. So we would like to have a decent living wage.”

    Smalls didn’t stop there. He says Amazon needs to provide free health care and child care for workers. Additionally, he says that Amazon must provide 0,000 in compensation for each Amazon worker that died during Covid-19 due to the company’s allegedly unsafe work environment and lack of preventative measures to stop the spread of the virus.

    Investors may try to ignore this. However, it’s becoming increasingly serious. Smalls’ group recently set up a guillotine outside of one of Bezos’ houses in a dramatic protest. Additionally, reporters recently exposed the fact that Amazon is paying tons of money to spy on its employees in an effort to keep them from unionizing. Needless to say, this is a terrible look for Amazon, and could both irritate the public and draw hostile regulation from politicians.

    1. Antitrust Concerns

    Amazon has been a bipartisan target for criticism. Democratic politicians such as Bernie Sanders and Andrew Yang have blasted Amazon for paying insufficient wages while destroying malls and Main Street businesses.

    Meanwhile, the Trump Administration has launched investigations into the big tech companies, including Amazon. It’s also no secret that Jeff Bezos and President Trump have some animosity toward each other.

    However, through the pandemic, Amazon had largely avoided any actual consequences for their perceived monopoly position in online retail. That may change though. While the pandemic has accelerated Amazon’s market share gains, it has also amplified criticism that the company is too powerful.

    Amazon’s latest move — turning failing malls into distribution centers — is drawing particular ire. With Amazon having crushed many local towns and cities’ tax bases, look for politicians to force Amazon to pay up for its past anti-competitive behavior.

    3. Rising E-Commerce Competition

    The one ray of good news on the anti-trust front is that Amazon is starting to lose share in many e-commerce niches. Actually, that may be bad news too though, in the broader AMZN stock outlook. Over the past six months, a ton of e-commerce stocks such as Shopify (NYSE:SHOP), Etsy (NASDAQ:ETSY) and Chewy (NYSE:CHWY) have positively blasted off.

    All these sites serve verticals that Amazon could dominate. Instead, Amazon is losing ground to niche competition left and right. It’s also getting crushed in the grocery wars, as the Whole Foods acquisition appears to be a lemon.

    Turns out, rivals aren’t just going to let Amazon eat the whole internet without a fight. While this may keep the antitrust regulators at bay a little longer, it’s still not great for Amazon’s share price. When investors are betting on Amazon remaining invincible indefinitely, any sort of mishap can cause the share price to slide.

    AMZN stock sells for such an absurdly high multiple that it would take nearly miraculous execution from the management team to warrant a higher share price once the Covid-19 tailwinds are gone. And instead, large chunks of the total addressable market are disappearing as sites like Shopify and Etsy are enjoying historic growth this year.

    AMZN Stock Verdict

    None of these three factors will necessarily sink AMZN stock tomorrow. The company has several potential catalysts that could still power shares higher as well.

    At any point, Bezos could copy his peers at Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) and issue a stock split. This might drive up the stock price. Furthermore, the lingering effects of the pandemic may lead to a strong holiday season for Amazon.

    Regardless, huge headwinds will soon slow down Amazon’s rise. After rising sixfold since 2016, look for Amazon stock to deliver far less impressive returns going forward.

    In fact, the unthinkable may happen; AMZN stock could even go down as these pitfalls trip the company up. Both the company and its shareholders have become complacent after years of unbridled success. That’s a risky place to be in the fast-changing world of commerce.

    On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article.

    Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a 0 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

    Amazon Stock: Is It A Buy Amid Epic Battle With Walmart ...

    23-12-2021 · Is Amazon Stock A Buy Right Now? Amazon is working on a cup base with a 3,773.18 buy point. On a positive side the stock is trading back above its 50-day moving average.

    23-12-2021

    Amazon (AMZN) plans to build its first large-format retail stores, making a new foray into physical outlets and stepping up its battle against Walmart (WMT). Is Amazon stock a buy?

    X

    Amazon's 30,000-square-foot stores, which will debut in California and Ohio, are less than one-third the size of Walmart's conventional outlets. They're about one-sixth the size of Walmart Supercenter stores.

    Walmart, the behemoth of brick-and-mortar discount stores, is dueling Amazon, the giant of online shopping, in a battle over the future of retail, e-commerce and grocery shopping.

    Much work remains for either company to win the Amazon vs. Walmart battle. Walmart needs to expand online operations while also managing 11,500 stores across 28 countries, of which 4,743 are in the U.S. It's in the process of redesigning 1,000 stores by the end of 2021. Its goal is to create a more streamlined and faster shopping experience for customers.

    At the same time, Amazon must continue its aggressive rollout of warehouse distribution centers and figure out its strategy for building physical stores.

    Amazon Is Making Critical Investments

    "The key question from here is when/if does the current investment cycle drive evidence of share gains and margin leverage," RBC Capital Markets analyst Brad Erickson said in a note. "Only time will tell, but in our view AMZN stock is making critical investments as consumers increasingly demand faster shipping which should at least maintain share gains while, importantly, growing gross profit dollars."

    Amazon reported third-quarter results on Oct. 28. Adjusted earnings fell 51% from the year-ago period to .12 a share. Analysts expected .92 a share. Revenue climbed 15% to 0.8 billion, below expectations of 1.6 billion.

    For its fourth quarter, Amazon forecast revenue in the range of 0 billion to 0 billion. That missed analyst estimates for 2 billion. Amazon forecast earnings before interest and taxes, called EBIT, of

    .5 billion, versus estimates of .1 billion.

    The company's cloud-computing unit, Amazon Web Services, reported revenue growth of 39% to .6 billion. That topped estimates for 35% cloud-computing growth.

    Cowen analyst John Blackledge recently raised his price target on Amazon stock to 4,500, from 4,300. He listed Amazon as one of the "best ideas" for 2022, in the mega-cap category.

    Amazon Introduces Numerous New Gadgets

    On Sept. 28, Amazon introduced a plethora of consumer electronics gadgets, including smart displays and a home robot, at a fall product launch event.

    The Seattle-based e-commerce giant unveiled several devices that leverage its Alexa voice assistant technology. They include the Echo Show 15 smart display, which is designed to keep families organized, connected and entertained.

    Another Alexa-enabled device is Amazon's first robot, which is named Astro. The robot will act as a security guard, companion and mobile smart display. It brings together new advancements in artificial intelligence, computer vision, sensor technology, and voice and edge computing, the company said.

    Earlier this month, Amazon moved deeper into the television market with an all-new lineup of devices and its first Amazon-branded 4K smart TVs. The Amazon TV products go on sale in October. Amazon also introduced a 4K version of its Fire TV stick.

    Plenty Of Growth Opportunities

    Amazon entered 2021 with plenty of big growth opportunities. This included plans to expand its virtual health care program across the U.S. It is also expanding its prescription drug business.

    On March 17, Amazon announced that its telehealth pilot program, called Amazon Care, would expand to all of its U.S. employees and their families as well as other firms this summer. The program first launched at its Seattle headquarters 18 months ago.

    If Amazon can deliver more efficient health care services, the potential is enormous for fueling its growth engine — and by extension Amazon stock. Health care now comprises nearly a fifth of the U.S. economy.

    Amazon said the program enables workers to connect with medical professionals via chat or video conference, and connect patients with medical professionals. In addition, Amazon Care can dispatch a medical professional to a patient's home for additional care.

    Analysts at Jefferies give Amazon a buy rating and price target or 4,000.

    "We believe low expectations following two consecutive guide-downs better positions AMZN for upside in the core retail business," according to a Jefferies report.

    "We also see attractive growth at AWS and advertising, AMZN's two highest margin businesses, serving to more than offset near-term cost headwinds from labor shortages and supply chain disruption," it said.

    Tapping The Market For Prescription Drugs

    In addition, Amazon is tapping into the 0 billion market for prescription drugs. The company fired a big shot across the bow of drugstores and prescription drug wholesalers late last year when it launched Amazon Pharmacy. The new unit will offer Amazon Prime members discounts of up to 80% on generic drugs and 40% on brand medications.

    On May 26, Amazon announced it is acquiring iconic film studio Metro-Goldwyn-Mayer for .45 billion, looking broadly expand its position in streaming video and increase the value of its Prime rewards program. The acquisition is Amazon's largest since buying Whole Foods for .7 billion in 2017.

    To get Amazon Prime, users pay an annual or monthly fee for the service and receive multiple perks. This includes free access to Amazon Video and Amazon Music. Amazon has invested billions of dollars in its film and TV operations as well as live sports.

    Another growth vehicle for Amazon in 2021 is advertising. When looking for a product, about half of U.S. adults start their search with Amazon. More searches draw more advertisers. And as Covid-19 has caused more consumers to shop online that will keep Amazon's ad growth humming.

    Technical Analysis Of Amazon Stock

    In the stock market, timing is critical. So when you're looking for stocks to buy or sell, it's important to do the fundamental and technical analysis that identifies lower-risk entry points that also offer solid potential rewards.

    The IBD Stock Checkup tool shows that Amazon stock has an IBD Composite Rating of 72 out of 99.  When choosing growth stocks for the biggest potential gains based on the CAN SLIM investment paradigm, focus on those with a Composite Rating of 90 or higher.

    Its Relative Strength Rating is 62. The rating means that Amazon stock has outperformed 62% of all stocks in the IBD database over the past 12 months. Ideally, look for stocks with a rating of 80 or higher.

    Amazon is currently not a buy but is working on a cup base with a 3,773.18 buy point.

    If you're interested in buying large-cap stocks, in these articles you'll find technical analysis of leading large caps to see if they are in or near a proper buy zone.

    You'll also find alerts to warning signs and sell signals that show when to take your profits or cut short any losses. And, you'll discover if the current stock market trend is conducive to buying stocks, or if it's an environment where you want to take defensive action and sell.

    Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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    Why Amazon.com (AMZN) Stock Is Down In After-Hours Trading ...

    Why Amazon.com (AMZN) Stock Is Down In After-Hours Trading Today Amazon.com (AMZN) is falling after-hours Thursday after missing analysts' estimates for …

    NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) - Get Amazon.com, Inc. Report were falling 7.1% to 1 in after-hours trading on Thursday after missing analysts' estimates for earnings and revenue in the third quarter.

    The online retailer reported a loss of 95 cents a share for the third quarter, lower than the loss of 74 cents a share analysts surveyed by FactSet expected. Revenue grew 20.4% year over year to .58 billion for the quarter, falling below analysts' estimates of .84 billion for the quarter.

    Looking forward to the fourth quarter, Amazon expects to report revenue of .3 billion to .3 billion, representing growth of 7% to 18% from the year-ago quarter.

    STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

    TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

    "We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."

    You can view the full analysis from the report here: AMZN Ratings Report

    AMZN data by YCharts

    Image placeholder title

    STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

    AMZN Stock Should Have a Much Better 2022

    12-01-2022 · AMZN Stock by the Numbers. When you look at Amazon’s numbers in 2021, its important to keep its ridiculously successful 2020 in perspective. Amazon stock jumped 73% in 2020, versus a gain of 15 ...

    12-01-2022

    If there’s any big-name stock that disappointed investors in 2021, it’s Amazon (NASDAQ:AMZN) stock.

    Logistics activity on the Amazon site of Vélizy-Villacoublay in France. Packages are sorted by workers on coneyors.
    Source: Frederic Legrand - COMEO / Shutterstock.com

    But should you really be surprised by that? Probably not.

    Amazon had a ridiculously profitable 2020 for a tragic reason. The Covid-19 pandemic shut down brick-and-mortar stores across the country. Suddenly stuck at home and armed with government stimulus payments, shoppers turned to e-commerce in record numbers.

    But the world was a different – and better – place in 2021. Stores reopened. Kids went back to school. Workers started returning to their offices.

    And even as the omicron variant ravages the U.S. right now, there seems to be little interest in shutting down the country again. Most schools are still offering in-person learning. Jets are still zipping across the sky.

    That’s great for you and me. But that’s not so great, as it turns out, for AMZN stock.

    AMZN Stock by the Numbers

    When you look at Amazon’s numbers in 2021, its important to keep its ridiculously successful 2020 in perspective. Amazon stock jumped 73% in 2020, versus a gain of 15.3% for the S&P 500.

    So, the year-over-year comparisons for AMZN stock are really out of whack in 2021. Operating income in the third quarter was .9 billion, which was a drop from .2 billion in the third quarter of 2020.

    Net income also fell on a year-over-year basis, going from .3 billion and .37 per diluted share in Q3 2020 to .2 billion and .12 per share in the third quarter of 2021. Analysts had expected .92 per share in the quarter.

    Overall, the company’s revenue of 0.81 billion missed analysts’ expectations of 1.6 billion.

    As I’ve written previously, I’m not expecting Amazon to have a great fourth quarter, either. Q4 and full-year 2021 results will likely come out early next month.

    For the year, Amazon gained only 2.3% in 2021, while the S&P 500 rose more than 22%.

    Looking Ahead

    Does all this mean Amazon is a bad stock? Are the days of huge growth in the rearview mirror?

    I don’t think so.

    It’s important for investors not to overreact to the day-to-day news. We all eagerly look forward to those quarterly earnings reports so we can see if a company met expectations, blew them out of the water or fell short. But when we do that, we should also look at the big picture.

    Why are the numbers high or low? What’s going on in the world? And in Amazon’s case for the sake of this article, what kind of numbers are we comparing year-over-year performance?

    In 2020, Amazon consistently overperformed expectations because the pandemic created a unique situation. Then in 2021, it underperformed because experts consistently compared it to its 2020 performance and marveled that the company was purportedly losing ground.

    Now we’re in 2022. And later this spring, we’ll see Amazon’s Q1 earnings report that will be measured against how the company performed in the first quarter of 2021. And in that comparison, Amazon’s 2022 numbers are going to look pretty solid.

    Goldman Sachs is already on board the AMZN stock bandwagon. The investment bank says Amazon is its top internet stock for 2022. It says Amazon is “exposed to a multitude of broader secular growth themes, including e-commerce, advertising, cloud computing, media consumption and consumer subscription adoption” that should drive the share price higher in the next 12 months.

    And its not alone. Of the 47 analysts who cover AMZN stock, 43 currently list it as a “buy” or “strong buy.” The consensus price target is ,104, which represents 24% upside from today’s prices.

    The Bottom Line on AMZN Stock

    Amazon has already announced the company will take a billion charge in the fourth quarter from increased labor costs, productivity losses and inflation. Operating profit for Q4 will also likely suffer.

    But Amazon is more than just an e-commerce company. Its Amazon Web Services made .9 billion in the third quarter, which was more than AMZN made from its retail division. And that number will continue to grow, even if ecommerce continues to be challenged.

    Looking ahead to 2022 numbers, I’m expecting much better performance from Amazon this year. You won’t see 70% stock growth in 2022, but gains in the 25% to 30% range are surely reasonable.

    On the date of publication, Patrick Sanders 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.

    Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders.

    3 Reasons Why Amazon Stock is Dropping

    3 Reasons Why Amazon Stock is Dropping. Amazon reported a decline in third-quarter earnings after the market closed on Thursday. The e-commerce giant recorded a profit of .1 billion which came out to .23 per share. The earnings number fell …

    3 Reasons Why Amazon Stock is Dropping

    Amazon reported a decline in third-quarter earnings after the market closed on Thursday. The e-commerce giant recorded a profit of .1 billion which came out to .23 per share. The earnings number fell short of analysts’ expectations for an EPS of .59 per share. During the same quarter in 2018, earnings were .75 per share. This was the first time Amazon’s earnings have declined on a year-over-year basis since June 2017.

    In terms of revenue, Amazon comfortably beat expectations. The company recorded sales of .98 billion, which was higher than the .83 billion that was expected. In the same quarter in 2018, Amazon had recorded .58 billion in sales.

    Earnings season is a time when investors pay close attention to hits and misses. When a company reports lower revenue and/or earnings, it can indicate an underlying problem(s) that will affect the company’s short- or long-term growth.

    So the two questions on investor's minds are why did Amazon miss on earnings, and how concerned should investors be? Here a few reasons and explanations for why they should not be that concerning.

    Amazon is spending a lot of money on one-day delivery

    Amazon has unapologetically put revenue growth ahead of profits. The company’s move towards one-day delivery for Prime members is a great example of this. However, this is costing the company money. And Amazon indicated that they anticipate to be spending even more money during the upcoming holiday season.

    “We are ramping up to make our 25th holiday season the best ever for Prime customers — with millions of products available for free one-day delivery,” Amazon Chief Executive Jeff Bezos said in Thursday’s earnings announcement. “Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers.”

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    Looking for the next tech disruptor? The Metaverse represents the next iteration of the internet and social media. Nextech develops and operates AR and VR platforms critical for companies creating and populating this new landscape.

    How concerned should you be? I don’t think you need to be very concerned. The question you have to ask yourself is whether or not Amazon will start suffering a decline in revenue. Based on the traffic I see from Prime trucks in my neighborhood, I don’t see that as being very likely. And prior to the second quarter of this year, Amazon had been reporting record profits. For all of 2018, Amazon reported a record billion in profits. However, this number was more than three times its previous annual record. The company also had reported record quarterly profits in the four quarters that preceded this year’s second-quarter downturn.

    The bottom line, Amazon is a money-making machine and I don’t see that changing.

    What Are Fang Stocks 

    Amazon Web Services (AWS) is showing decelerating growth

    In their earnings report, Amazon reported that AWS (their cloud computing division) increased revenue by 35% in the third quarter. While the revenue from AWS is growing faster than at Amazon.com (which grew at 24%), the revenue growth was down from 35% in the second quarter. The 35% also marked the lowest growth for the division in over five years.

    How concerned should investors be? Slightly. This is because AWS has been the cash cow for Amazon in terms of operating income over the past four years. In the third quarter, AWS operating income was .26 billion which was 9% higher on a year-over-year basis. However, the percentage gain of 8.9% works out to the slowest growth in four-and-a-half years. Still AWS remains the dominant player in the cloud infrastructure and advertising revenue growth is accelerating faster than expected.

    The bottom line, AWS remains the go-to company as tech startups look to go public. As long as that trend continues, the long-term outlook remains solid.

    Amazon is under regulatory scrutiny

    As reported by Lisa Lacy of Adweek, anti-trust action against Amazon will be the topic of conversation as the United States moves into an election year. Sen. Elizabeth Warren, a leading contender for the Democratic nomination has a plan to break up Amazon. Warren’s plan would cut off Amazon’s Marketplace and Basics line of products from the rest of the company. In Warren’s outlook, this would undo the “damage” done by the acquisitions of Whole Foods and Zappos that Warren deems anti-competitive.  

    However, Lacy reports a more likely outcome would be to see AWS spun off as a separate company. This is the opinion of NYU marketing professor Scott Galloway and Atlantic writer Franklin Foer. Ultimately this will be Amazon’s decision. However, one reason the spin-off may happen is as a preemptive strike against regulators.

    “If the writing is on the wall and pressure is building for regulatory action … then (Amazon) might decide to do it in a way they can control,” says Matthew Wilson, an associate professor of political science at Southern Methodist University.

    How concerned should investors be? This may be the most troublesome long-term issue. Amazon has changed the retail model to one where the line between convenience and immediacy is blurred. At the same time, the more Amazon expands, the more consumers are realizing how much of their privacy they have conceded.

    At issue is Amazon’s use of the data it has on its third-party sellers as well as the increasing encroachment of Amazon’s digital assistant Alexa into consumer’s lives. For example, Alexa can theoretically become part of a refrigerator that knows if perishable items, such as milk or eggs are going to go bad and reorders them automatically from Whole Foods. No action is needed by the consumer, but the consumer also loses the choice of buying those items from other retailers.

    The bottom line, Amazon may look like a very different company in a year’s time. This would be the largest obstacle to growth.


    7 Pharmaceutical Stocks to Buy For a Healthy Portfolio in 2022One year ago, investors expected 2021 to be a huge year for pharmaceutical stocks. The bullish perspective was that as vaccines rolled out and the economy reopened, investors would shift from biotech stocks to traditional pharmaceutical stocks. But the Delta variant has kept Covid-19 top of mind for many investors. While it’s true that some pharmaceutical stocks were part of the vaccine race, other players in the space have not performed as well as was hoped. Case in point, as of October 6, 2021, the iShares U.S. Pharmaceuticals ETF (NYSEARCA:IHE) is up only 9.7% in the last 12 months. And if you bought shares of the fund at the beginning of the year, you have no growth to show for your patience. There are reasons beyond Covid-19 to consider when assessing the disappointing performance of pharmaceutical stocks. One is the current political climate which is making no secret of its desire to reshape the healthcare industry. And it has the pricing practices of “big pharma” firmly in its crosshairs. However, the pharmaceutical sector is still loaded with quality stocks for investors who are willing to accept the inherent risk. And that’s the focus of this special presentation. In the next few minutes, we’ll take a look at seven pharmaceutical stocks that are ready to make strong moves forward in 2022.

    View the "7 Pharmaceutical Stocks to Buy For a Healthy Portfolio in 2022".


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    Why Amazon.com (AMZN) Stock Is Declining Today

    Why Amazon.com (AMZN) Stock Is Declining Today Amazon.com (AMZN) stock is down after Apple (AAPL) unveiled its Apple Pay and iPhone 6 today, threatening Amazon's e-commerce platform and Fire Phone...

    NEW YORK (TheStreet) -- Shares of Amazon.com Inc (AMZN) - Get Amazon.com, Inc. Report are falling by 3.31% to 1 after Apple (AAPL) - Get Apple Inc. Report launched Apple Pay and two versions of the iPhone 6 in its launch event this afternoon, threatening Amazon's e-commerce mobile platform and its Fire Phone. 

    Apple Pay is a mobile payment system linked to a credit card that consumers can use by holding their iPhones to a payment device. 

    A number of financial institutions and retailers like Whole Foods Market (WFM) , The Walt Disney Company (DIS) - Get Walt Disney Company Report , and McDonald's Corp. (MCD) - Get McDonald's Corporation Report  have already signed on to accept the payment system which will be available starting next month.

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    Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

    "We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share."

    Highlights from the analysis by TheStreet Ratings Team goes as follows:

    • The revenue growth came in higher than the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
    • Although AMZN's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
    • 36.46% is the gross profit margin for AMAZON.COM INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.65% trails the industry average.
    • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 1700.0% when compared to the same quarter one year ago, falling from -.00 million to -6.00 million.
    • Net operating cash flow has declined marginally to 2.00 million or 2.04% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, AMAZON.COM INC has marginally lower results.
    • You can view the full analysis from the report here: AMZN Ratings Report

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    Amazon.com, Inc.: This Is Why AMZN Stock Can Drop To 0

    02-11-2016 · Amazon stock fell from 5.00 to 5.00, and this represented a 27.5% drop after the 50-day moving average was breached. Similar bearish price action can now be …

    02-11-2016
    By Patrick Brik, BAS, CFA, CMT Published : November 2, 2016

    Amazon.com, Inc. (NASDAQ:AMZN) stock opened 4.5% lower the morning after a disappointing earnings quarter was announced.

    Amazon missed its earnings estimates, reporting earnings of

    .52 per share in the third quarter, while expectations were for

    .78 per share. This news of an earnings miss left a gap on the AMZN stock chart. This gap has done some damage to the price chart and increases the likelihood that further bearish price action will continue.

    The method I use to analyze potential investments is based on their price charts. I am a believer that stocks trend, and as a result, past data can be used to discern trends and forecast future prices. The body of knowledge behind my analysis is known as technical analysis, and new developments in behavioral finance support this style of investment analysis.

    I was previously bullish on Amazon stock, but that has changed after the earnings miss that caused the share price to gap lower. This price gap has done damage to the technical picture, and this opens the door to lower share prices, as that is now the path of least resistance. Throw in the uncertainty with regards to the presidential election and the possibility of a rate hike, and the perfect storm to drive the share price lower is created.

    The Amazon stock chart below illustrates the chart damage that was caused after the company’s earnings were released.

    amznn1

    Chart courtesy of StockCharts.com

    AMZN stock opened lower on October 28, 2016 and left a gap on the price chart. This gap has Amazon stock trading below the 50-day moving average. This moving average has been a level of support for AMZN stock in 2016, as any attempt to breach this level was met with buying support.

    The previous break of this moving average occurred on the first trading day of 2016, and Amazon stock proceeded to sell off dramatically in the weeks that followed. Amazon stock fell from 5.00 to 5.00, and this represented a 27.5% drop after the 50-day moving average was breached. Similar bearish price action can now be expected.

    There has yet to be any follow-through with regards to the gap down, so I expect AMZN stock to test the 50-day moving average from underneath. If it fails to close above this level, then I would be looking for levels of support as potential downside targets.

    The following Amazon stock chart illustrates the levels of support that traders will be watching.

    amznn2

    Chart courtesy of StockCharts.com

    I focused on the three different methods of finding support, and to my dismay, all three levels converge at one price.

    The first level of support is found using a horizontal trend line, and the line is created by using the previous peak. This price level acted as a level of resistance in 2015, and now this level is expected to act as a level of support when it is tested from above. It is not uncommon for a price to return to a previous level of resistance from above and to test it to reaffirm that the previous breakout was warranted.  This trend line sits at 0.00.

    The second level of support is found using the 200-day moving average. This moving average is the dividing line between stocks trading in a bull market versus stocks trading in a bear market. When the share price is above the moving average, it is bullish. When the share price is below the moving average, it is bearish. In bull markets, it is common for a share price to find support from the moving average when it is being tested from above. This moving average is currently sitting at 0.00.

    The third level of support is found using an uptrend line. This trend line is created by connecting the valleys on the price chart. This line has served to support AMZN stock since shares bottomed in 2015. This line represents the bullish trend in Amazon stock; a break below this line would be cause for concern, as it would allude to further selling. The uptrend currently sits at 0.00.

    All three of these levels of support are currently converging at one price. I would expect this level to hold on the first attempt at a minimum. Beyond that will be dependent on the status of the equity markets.

    The Bottom Line on Amazon Stock

    The events surrounding the earnings report have been the catalyst to change my views on Amazon stock. I am now bearish on this position and believe that lower prices will prevail. The 0.00 price appears to be the first level of support, and that is the level I will be watching to possibly act on. If AMZN stock can regain the 50-day moving average on a weekly closing basis, then I will have reason to retract my bearish view.

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    AMZN: Why Amazon Stock Is Due For a Breakout Now ...

    23-02-2021 · Blowout Earnings. The question is why. Truthfully, it’s hard to tell. There are some possibilities. Amazon stock did dramatically outperform the market in …

    23-02-2021

    Here’s an interesting hypothetical about Amazon (NASDAQ:AMZN). Imagine that on July 20, an investor knew everything that was going to happen in the market for the next seven months — except for the price of Amazon stock.

    Amazon stock
    Source: Ioan Panaite / Shutterstock.com

    She knew that the tech-heavy Nasdaq Composite would rally 29%, and the large-cap-focused NASDAQ 100 would rise by 24%. She knew that e-commerce would stay hot, as Shopify (NYSE:SHOP) gained 42% and Wayfair (NYSE:W) 27%. And that the market’s multi-year preference for growth over valuation would remain firmly intact.

    She knew that Amazon’s fourth quarter earnings would be an absolute blowout, following a strong Q3. That post-pandemic trends in Amazon’s business beyond e-commerce, like cloud and streaming video, would stay favorable. She even knew that Chief Executive Officer Jeff Bezos would step down.

    With all that information, would that investor guess that Amazon stock, over those seven months, would gain less than 2%? I don’t believe she would. And that seems to be the opportunity.

    An Impressive Growth Story

    For years now, Amazon has looked like one of the most expensive stocks in the market. Until recently, it was usually the most expensive large-cap name out there, or at least close.

    • 10 Dividend Stocks Increasing Their Payouts 

    Part of that appearance came from the fact that Amazon stock always had a high price-earnings multiple. But the focus on that metric alone missed a few key points, as I’ve long argued. Notably, Amazon’s earnings were depressed by constant investments in the business. More broadly, Amazon hasn’t fully maximized price realization, instead preferring to acquire customers (both in the U.S. and overseas).

    Those specifics aside, there was no reason for Amazon to be cheap. This literally is one of the best growth stories in history. This is a massive company that like clockwork has grown revenue at a 20%-plus annual clip. It’s arguably the best retailer in the world – although Walmart (NYSE:WMT) fans might disagree. Its cloud business still has a massive market share lead, against the likes of Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), neither of which is accustomed to second place.

    This simply wasn’t a stock that investors could look to purchase on the cheap. Amazon never gave the reason a market to offer much of a discount.

    Amazon Stock Isn’t Quite Cheap, But …

    Certainly, Amazon stock isn’t yet trading at a discount. But after seven months of sideways trading, along with impressive earnings growth, valuation suddenly looks rather reasonable.

    Relative to full-year 2020 results, AMZN now trades at about 52x free cash flow, if still about 78x earnings. But, at least based on Wall Street estimates, those multiples should come down in a hurry. EPS estimates for 2022 sit above , putting the forward price-earnings multiple below 50x.

    None of those metrics make AMZN a value play. But in this market, 49x forward earnings is not terribly out of line.

    Meanwhile, that 2022 estimate (admittedly with an enormously wide range) suggests a 25% annualized growth rate over the next two years. There are companies growing closer to 10% trading in the low 30s on a P/E basis. I’d much rather pay up for this kind of growth.

    Again, Amazon stock isn’t cheap. But it shouldn’t be, and it’s at least cheaper than it’s been in quite some time.

    Blowout Earnings

    The question is why. Truthfully, it’s hard to tell.

    There are some possibilities. Amazon stock did dramatically outperform the market in the first half of the year with a 49% rally, as investors priced in tailwinds from the pandemic. That rally may have some still-lingering effects.

    Competition is a concern. In cloud, Microsoft’s Azure continues to post impressive growth, and there are no shortage of other providers trying to take share. On the e-commerce side, smaller niche players have done impressively well particularly since the pandemic hit, which might raise some questions about how Amazon’s broad approach will be going forward.

    Those concerns have some validity. But I’d argue that they’re at least overblown. Amazon’s fourth-quarter earnings report this month shows why.

    Amazon’s revenue grew 44% year-over-year in the quarter. It rose 38% for the year.

    Bear in mind that the full-year growth came off a 2019 base of 0.5 billion. Amazon added more than 0 billion in sales in a year.

    There are 32 U.S. companies that generated that much total revenue in 2020. There are only five retailers to hit that level, if you include only the pharmacy operations for CVS Health (NYSE:CVS).

    Amazon isn’t giving that revenue away, either. Operating margins were nearly 6% of revenue in 2020. The idea that the company isn’t profitable at this point is a fiction.

    The numbers, across the board, are simply astounding. Yet, for the last seven months, investors have ignored Amazon stock. I don’t believe they’ll do so for too much longer.

    On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

    Why Amazon.com (AMZN) Stock Is Down Today

    Why Amazon.com (AMZN) Stock Is Down Today Amazon.com (AMZN) is falling Monday after cutting the price of the Fire Phone to 99 cents on a two-year contract. Author:

    NEW YORK (TheStreet) -- Amazon.com (AMZN) - Get Amazon.com, Inc. Report was falling -1.4% to 1.70 Monday after cutting the price of the Fire Phone to 99 cents on a two-year contract.

    The smartphone was first introduced for .99 on a two-year contract with AT&T (T) - Get AT&T Inc. Report . The Amazon Fire Phone still comes with a year of Amazon Prime at the lower price.

    The price cut for the smartphone comes after reports that the online retailer sold fewer than 35,000 units in the first 25 days, according to MarketWatch.

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    Earlier in the day Amazon announcing it will bring the Fire Phone to Germany and the U.K. on Sept. 30. The phone will be available on Deutsche Telekom (DTEGY) in Germany and Telefonica's (TEF) - Get Telefónica SA Report O2 network in the U.K.

    TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

    "We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share."

    Highlights from the analysis by TheStreet Ratings Team goes as follows:

    • The revenue growth came in higher than the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
    • Although AMZN's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
    • 36.46% is the gross profit margin for AMAZON.COM INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.65% trails the industry average.
    • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 1700.0% when compared to the same quarter one year ago, falling from -.00 million to -6.00 million.
    • Net operating cash flow has declined marginally to 2.00 million or 2.04% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, AMAZON.COM INC has marginally lower results.
    • You can view the full analysis from the report here: AMZN Ratings Report

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    Amazon Stock: Should You Buy It in February?

    So it's uncertain whether Amazon's stock will take off again this year. What Analysts Say Credit Suisse’s Stephen Ju dropped his price on the stock from ,100 to ,000.

    Amazon's  (AMZN) - Get Amazon.com, Inc. Report fourth-quarter earnings report is drawing near. Despite not showing much optimism about the results, analysts are unanimously confident 2022 will be Amazon’s year.

    Here are one argument why you should buy AMZN right now and one argument why you shouldn’t.

    Figure 1: Amazon Stock: Should You Buy It in February?

    Figure 1: Amazon Stock: Should You Buy It in February?

    Unsplash

    (Read more from Amazon Maven: What to Expect From Amazon Q4 Earnings)

    A Good Business for a Good Price

    Many investment firms have labeled Amazon as their top pick for 2022. That includes the likes of Goldman Sachs, JPMorgan, Wells Fargo, UBS, and Bank of America.

    Analysts are confident not only that the tides for e-commerce will finally change by the second half of the year, but also that Amazon's AWS, advertising, and subscription businesses will thrive.

    As for its price, the stock is being traded far from its historical highs. In fact, Seeking Alpha author Michael Dolen argues the stock is at its cheapest point in 10 years. The company's earnings before interest, taxes, debt, and amortization (EBITDA) has ranged between 22.85 and 50.74, but now is at 21.87.

    Figure 2: Amazon price / Amazon EV to EBITDA.

    Figure 2: Amazon price / Amazon EV to EBITDA.

    YCharts

    The Short Term Outlook Isn’t That Bright

    Analysts are not optimistic about fourth-quarter results. Despite a good holiday season, since 2021, Amazon has been suffering from macroeconomic headwinds that have constricted its margins.

    Since an investment is good only when it actually delivers the calculated return within the expected period, a “buy-the-dip” approach is likely to hand over satisfying results within an uncertain amount of time. This could happen by the second half of 2022. Or it could happen five years from now.

    AMZN's performance seems to have a lot to do with e-commerce sales growth. In turn, e-commerce sales growth is sensitive to inflation. Right now, we don't know how long inflation growth will continue. So it's uncertain whether Amazon's stock will take off again this year.

    What Analysts Say

    Credit Suisse’s Stephen Ju dropped his price on the stock from ,100 to ,000. BMO Capital analyst Daniel Salmon rated the stock even lower, assigning it a target at ,600 — a large drop, considering his previous price target of ,100.

    On the other hand, Goldman Sachs’ Eric Sheridan kept his price target for the stock. In November 2021, the analyst chose AMZN as Goldman’s top pick for 2022 with a price target of ,100.

    Despite its share-price plunge, Amazon has unanimously been rated as a “strong buy” by the 26 Wall Street analysts listed on TipRanks, with an average price target at ,150, implying a 44% upside.

    (Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting the Amazon Maven)

    Amazon News: Why AMZN Stock Is Falling Today

    13-05-2019 · Amazon News: Why AMZN Stock Is Falling Today AMZN could be the target of lawsuits By William White , InvestorPlace Writer May 13, 2019, 12:48 pm EDT May 13, 2019

    13-05-2019

    Amazon news about a new legal theory that could target the company may have AMZN stock falling on Monday.

    Amazon News: Why AMZN Stock Is Falling Today

    This new legal theory claims that some rivals of Amazon (NASDAQ:AMZN) would be able to sue it over predatory prices. The legal theory would target companies that lower prices below profitable levels in an effort to bankrupt competition.

    A specific case brought up in connection to this legal theory concerns diapers.com. The company was an acquisition target for Amazon, but the owners refused to sell it. Following this, AMZN dropped its diaper prices to the point that it would likely be taking losses on each sale.

    As a result, diapers.com was also having to drop prices to compete, but couldn’t afford to take the losses. Out of fear that AMZN would lower prices even further, the company agreed to be bought by Amazon.

    If the new legal theory could target the company for these practices, it would be bad Amazon news. This could see the company facing a large amount of lawsuits from smaller rivals that may allegedly have to deal with these practices, reports The Verge.

    Other Amazon news today includes the company expanding its Delivery Service Partner program. This has the company promising to give employees initial funding to quit and start up delivery businesses. That includes ,000 in startup costs and up to three months of wages.

    AMZN stock was down 4% as of Monday afternoon.

    As of this writing, William White did not hold a position in any of the aforementioned securities.

    Article printed from InvestorPlace Media, https://investorplace.com/2019/05/amazon-news-hitting-amzn-stock/.

    ©2021 InvestorPlace Media, LLC

    Here's Why Amazon.com (AMZN) Stock Is Down Today

    NEW YORK (TheStreet) -- Amazon.com(AMZN) - Get Amazon.com, Inc. Reportstock is declining 2.40% to 0.51 in mid-afternoon trading on Thursday, as …

    NEW YORK (TheStreet) -- Amazon.com (AMZN) - Get Amazon.com, Inc. Report stock is declining 2.40% to 0.51 in mid-afternoon trading on Thursday, as Alphabet's (GOOGL) Google Cloud Platform won Apple (AAPL) as a customer in a blow to Amazon.com's Amazon Web Services, sources told CRN.

    Apple reportedly signed the deal with Google late last year, and has since greatly reduced its reliance on Amazon.com's cloud computing services while remaining a customer. 

    The iPhone-maker is spending between 0 million and 0 million on Google Cloud Platform, CRN notes. This would greatly benefit the vendor, which is widely believed to be third behind Amazon Web Services and Microsoft (MSFT) Azure in the public cloud.

    However, Pacific Crest contends that the cloud services market provides a billion opportunity big enough for Amazon.com, Microsoft and Google, Barron's reports.

    "There would certainly be some wins and losses among the three along the way, but it would likely be good for all three in the intermediate term," the firm wrote in a note. 

    (Amazon.com is held in the Growth Seeker portfolio. See all holdings with a free trial.)

    Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

    Amazon.com's strengths such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth are countered by the fact that the company has favored debt over equity in the management of its balance sheet.

    You can view the full analysis from the report here: AMZN

    TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

    Image placeholder title
    Amazon’s High Flying Stock May Drop By As Much As 15%

    12-08-2020 · Amazon.com Inc.’s (AMZN) stock has stalled out despite reporting blistering second-quarter results that easily beat investor and analysts’ expectations. Still, the shares have struggled to ...

    12-08-2020

    Amazon.com Inc.’s (AMZN) stock has stalled out despite reporting blistering second-quarter results that easily beat investor and analysts’ expectations. Still, the shares have struggled to climb, and now maybe heading lower based on some options bets and the technical charts. A pullback could even result in the stock falling by as much as 15%.

    The stock’s valuation makes it susceptible to a pullback, given it is trading at a very historically high level –nearly four times forward sales estimates. What seems most surprising is that the multiple has not come down much despite analysts’ meaningfully upping their revenue estimates for the company.

    The technical chart may illustrate it the best as the stock is approaching an uptrend line that dates back to nearly the lows in mid-March. But more recently, the equity has formed a downtrend, which serves as a level of resistance since peaking on July 13. Additionally, the relative strength index is trending lower, a sign that bullish momentum has turned bearish, and that Amazon may break that March uptrend.  Finally, volume levels have been falling since peaking in mid-July, and that is an indication that the number of buyers is thinning.

    Should Amazon drop below ,100, breaking the uptrend, it could result in the shares falling to support in a region of ,600 to ,800, amounting to a drop of 12% to 15%.

    Amazon technical chart

    Tradingview

    Recent options trades seem to suggest that the upside in Amazon is limited. Open interest levels for the September 18 ,150 calls and puts increased by about 1,000 contracts a piece on August 13. Digging into the trades, we find that the calls were sold for 9.85, while the puts were bought for about 3.85. Overall, it creates a spread transaction, where a trader is betting that Amazon is below ,150 by the expiration date in September.

    Valuation At Extreme Levels

    The pessimism around Amazon may be because the stock has been on an epic run, with the shares nearly doubling off their March lows, compared to an S&P 500, which has advanced by almost 55% over the same time. That massive advance has pushed Amazon’s forward price to sales multiple to its highest level since the early 2000s, at roughly 3.9.

    Amazon's price to sales multiple

    Refinitiv Datastream

    The significant valuation comes despite analysts sharply raising their sales estimates for the company. Analysts now see the company generating revenue of 8.0 billion in 2020 up from 7.8 billion before its July results. Meanwhile, for 2021 and 2022, analysts estimate revenue of 4.0 billion and 4.5 billion, up from 9.4 billion and 8.4 billion, respectively.

    Amazon analysts' revenue estimates

    Thomson Reuters

    But with the next round of quarterly results not until some time in the middle of October. It would seem that momentum is going to drive the direction of the stock. However, given the equities massive gains since March, a pullback would not only be healthy, it should be welcomed, as it would create a potentially tremendous long-term opportunity.

    Michael Kramer is a financial market strategist and the portfolio manager of the Mott Capital Thematic Growth Portfolio.

    Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future results.

    Why Amazon's Stock Faces Steeper Declines Ahead

    One sign that bullish momentum is leaving the stock is that the relative strength index (RSI) has been trending lower since peaking at overbought levels …

    (Note: The author of this fundamental analysis is a financial writer and portfolio manager.)

    Amazon.com Inc's (AMZN) stock is about 9% off its all-time highs of September 4 at ,050. But now the stock is poised to fall even further based on technical analysis by perhaps another 5% and should that happen the stock could be down by as much as 15% from its highs. (For more, see also: Amazon’s Stock Faces More Declines Short Term.)

    Amazon’s market capitalization hit

    trillion in early September, and since then it has been all downhill. One sign of caution is that analysts have been shaving their revenue estimates for the current quarter and balance of the year since the middle of July. (For more, see also: Amazon Bulls Double Down Despite Shaved Forecasts.)

    AMZN data by YCharts

    The technical chart shows that Amazon was increasing in a long-term rising wedge starting in March, which is a bearish reversal pattern. Now the stock is trading around technical support at

    ,840. Should the stock fall below that level of technical support, then the stock could drop to its next level of technical support around

    ,740. 

    One sign that bullish momentum is leaving the stock is that the relative strength index (RSI) has been trending lower since peaking at overbought levels near 90 in January. The RSI has been trending lower since then and despite the stock making new highs this is a bearish divergence. 

    Analysts have been trimming their revenue estimates for the company since the company reported second-quarter results in July. Forecasts are now looking for revenue in the quarter to rise to billion down from billion. 

    The bigger problem is that revenue estimates for the balance of 2018 have declined as well, dropping by 1% while estimates for 2019 and 2020 have fallen by 1.2% and 1.8% since July. 

    AMZN Annual EPS Estimates data by YCharts

    But momentum in Amazon can swing, although there are plenty of red flags on the revenue side. Analysts foresee strong earnings growth for the balance of 2018 through 2020. They estimate it will grow at a compounded annual growth rate of 102%. 

    Amazon’s stock has moved lower in recent weeks, and should investors stay nervous about stocks, Amazon may continue to suffer.  But then again, with third-quarter results around the corner, a further decline may be short term. 

    Michael Kramer is the Founder of Mott Capital Management LLC, a registered investment adviser, and the manager of the company's actively managed, long-only Thematic Growth Portfolio. Kramer typically buys and holds stocks for a duration of three to five years. Click here for Kramer's bio and his portfolio's holdings. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future performance.