Amazon reported third-quarter earnings on Friday which disappointed Wall Street. Earnings beat estimates, but revenues ($56.6 billion) were below expectations ($57.10 billion). On top of that, Amazon gave weaker-than-expected guidance going into the holiday season.
Prior to Amazon announcing 3rd quarter results, Amazon could do no wrong. The stock was up 47%, its market cap increased by $400 billion and Amazon became the second company to reach the $1 trillion dollar valuation market cap prior.
But Amazon was priced for perfection and people were willing to pay for that perfection. However, after disappointing Wall Street, Amazon closed down 8% on Friday. And that sale off continued today.
Some people think the price decline represents a buying opportunity. I don’t disagree that Amazon is selling at a cheaper discount today, but I see further downside due to a lack of demand. Actually, I see another $400 of downside possibly because the next real demand on the monthly chart is at $1150.
and the next real demand on the daily chart is at $1240.
The nevertheless, the first key area to watch is the last level where price dipped, but ended up taking price all-time new highs above $2000...that level is $1375
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
Growth gets tougher and tougher as you grow. However, it continues to be impressive how margins have been able to remain high and should provide support.
They are the best at playing the margin gain and will remain the best of breeds when it's all said and done.
Amazon is a great long term hold but the short term may not be so great.