Thursday, November 24, 2022

Why Is Amazon Stock Going Down

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At : Your Daily Digest For Real Estate Investing 10/20/21

How Jeff Bezos stepping down as Amazon CEO affects stock price

Through a real estate investing lens, our Liz Brumer takes a look at the situation in Europe and how whats happening there could also happen on our side of the pond. The Millionacres takeaway: Perhaps energy shortages and costs arent the first thing on your checklist of factors to consider, Liz writes, but when comparing which market to enter, maybe this can help sway your decision one way or another. Howard Hughes is a developer of master-planned communities, and while it has invested heavily in its communities in recent years, the portfolio hasn’t seen much geographic expansion in a few years.

Stock Picks And Investing Trends From Cnbc Pro:

“Unfortunately, we still aren’t there yet, but her Fibonacci timing cycles suggest that the stock could potentially bottom sometime in the next couple of days possibly it already did earlier today,” Cramer said.

If that happens and Boroden is able to give a full endorsement of Amazon, Cramer said, the technician believes the stock could rally just below $3,900 per share. It closed Tuesday’s session down 0.28% at $3,381.83.

“If the stock fails to hold its support meaning if it closes down more than a few points below where it’s currently trading then it does ruin the whole bull thesis,” Cramer said. “In fact, if Amazon pulls back a bit more from these levels, Boroden says you need to expect substantially more downside.”

Still, Cramer advised viewers that he’s personally not expecting Amazon to fall significantly. He also noted his charitable investment trust owns Amazon.

for the CNBC Investing Club to follow Jim Cramer’s every move in the market. Disclosure: Cramer’s charitable trust owns shares of Amazon.

Balance Sheet & Cash Flow

As of Dec 31, 2020, cash and cash equivalents were $42.1 billion compared with $29.9 billion as of Sep 30, 2020. Further, marketable securities totaled $42.3 billion at the end of the fourth quarter, up from $38.5 billion at the end of the third quarter.Long-term debt was $31.8 billion in the reported quarter compared with $32.9 billion in the previous quarter.Further, the company generated $30.4 billion of cash from operation in the fourth quarter, which was up from $11.9 billion in the prior quarter.On a trailing twelve month basis, free cash flow came in at $31.02 billion in the reported quarter, up from $29.5 million in the prior quarter.

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Amazons Push Into Advertising

When investors reference companies in online advertising, two names come to mind: and Google, part of Alphabet .

Facebook and Google account for 59% of the U.S. online advertising market, which is estimated to be close to $130 billion annually. Because of this, the duopoly continues to face scrutiny from U.S. antitrust regulators. They want to know whether Googles algorithm favors its own ad exchange at the expense of third-party ad suppliers.

Any intervention is music to Amazons ears. Way down in third place with 8.8% of U.S. online ad spending, for once, Bezos gets to play the underdog. However, he wont be in this position for too much longer. Forecasts suggest that Amazons ad revenues could hit $38 billion annually by 2023.

While Amazon has little chance of catching the duopoly, it stands a good chance of becoming a strong third wheel. In 2019, to $14.1 billion. In the first quarter, to $3.9 billion. The company believes artificial intelligence and machine learning are helping deliver more relevant ads.

So while Facebook and Google are heavily dependent on advertising, Amazon has businesses like Amazon Web Services $9.2 billion in operating income in 2019 to lean on while building out its advertising business.

Due to Covid-19, ad revenues across the board will take a hit. That makes the companys AWS business that much more important in these troubling times.

Amazon Stock Dives On Weak Q3 2021 Guidance

Why Amazon Stock Crushed Earnings, Then Crashed 5.5%

Shares of found themselves under significant pressure after the company released its second-quarter earnings report.

Amazon reported revenue of $113.1 billion, which was lower than analyst estimates. The companys GAAP earnings of $15.12 per share exceeded analyst expectations but were not sufficient enough to provide support to Amazon shares.

In Q3 2021, Amazon expects to report revenue of $106 billion $112 billion, which means that Amazons revenue will decrease compared to the second quarter. The companys operating income is projected to be between $2.5 billion and $6 billion compared to $6.2 billion in Q3 2020.

The market was clearly shocked by the companys quidance for the next quarter, and the stock opened with a big gap down. The stock has made an attempt to gain ground as some speculative traders decided to buy the dip, but it failed to develop upside momentum.

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Amazon Stock Falls On Earnings Report

Amazon stock was pummeled after delivering a second-quarter earnings report that missed estimates, as consumers spent less time online as the Covid-19 restrictions were eased. Now, there’s likely to be a transition period where overall online growth will remain sluggish.

The Amazon earnings report arrived on July 29, after the market close. Revenue of $113.08 billion missed Wall Street estimates of $115.4 billion. Its third-quarter revenue outlook also fell short.

This is the first quarterly earnings report without Jeff Bezos at the helm. Andy Jassy officially took over as Amazon’s chief executive on July 5.

The Amazon second-quarter report comes as the company has exited the toughest part of the Covid-19 pandemic. Amazon scored massively during the pandemic as consumers flocked to online shopping while sheltering at home. The concern now is that it might also usher in more uncertainty about e-commerce growth for the next few quarters

The drop in Amazon stock was its largest decrease since May 1, 2020, when it fell 7.6%. Amazon stock is down 12% from its all-time closing high of $3,731.41 on July 8.

“Amazon hit an air pocket in near-term demand,” Monness Crespi Hardt analyst Brian White wrote in a note to clients. “However, we believe the company is uniquely positioned to exit this crisis as one of the biggest beneficiaries of accelerated digital transformation. We are lowering our estimates but maintaining our 12-month price of $4,500.”

Amazon Misses Q2 Expectations

Amazon reported Q2 results in late July 2021 that marked the companys third consecutive quarter of topping $100bn in revenue. Q2 revenue of $113.08bn was 27% higher than it was a year ago.

Amazon was a big beneficiary of Covid-19 lockdowns. For hundreds of millions of people worldwide, ordering online was the best option. As the world now reopens, many pre-Covid shopping trends are returning.

But despite what some would consider a poor quarter for revenue, Amazon’s earnings smashed expectations at $15.12 a share against estimates of $12.30, according to analysts surveyed by Refinitiv. Encouragingly, the margin-rich Amazon Web Services unit grew revenue by 37% year-over-year, hitting $14.81bn.

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Today At Amazon Accelerate: Amazon Launches New Innovations For Brands As It Announces Over 100000 Brands Have Joined Its Us Store In 2021

SEATTLE, October 20, 2021–Today at the Accelerate 2021 conference, Amazon announced that more than 100,000 brands have started selling in Amazons U.S. store so far this year, with sales by brands up 60% year over year for the 12-month period ending June 30, 2021. Amazon connects brands with hundreds of millions of customers worldwide, offering brands a wide range of tools and services to help drive their success. At the event, the company announced a range of new tools, services

  • Business Wire

    SEATTLE, October 20, 2021–Today at the Accelerate 2021 conference for third-party sellers, Amazon announced Product Opportunity Explorer, a new tool that helps sellers identify opportunities to launch new, high-potential products to serve unmet customer demand.

  • How Do I Increase My Chances Of Getting A Ps5

    Why this analyst says Amazon could go to $4,000 or $5,000 a share

    Major retailers like Walmart, GameStop, Amazon, Target and Best Buy don’t usually give much notice ahead of a restock. Sometimes they’ll have a restock in the morning, other times in the afternoon and, in some cases, even in the middle of the night. Here are some tips to help you get the jump on the competition.

    First tip: Don’t wait until you see an alert for a PS5 inventory drop. Check the links at major retailers for stock updates daily or even multiple times a day. If you do happen upon some PS5 availability, go all-in with as many browsers and devices as possible. On a desktop, for example, open the retailer’s page in Chrome, Firefox and Edge. Then do the same on your phone and tablet. The more devices and browsers, the better. It’s like with lottery tickets: The more you have, the better your chances of winning.

    Second tip: Create accounts at the different retailers and make sure you’re already logged in if you’re going to try to get a PS5. Make sure all your shipping, bill and payment info is updated on whatever device you can buy from, whether it’s a laptop, desktop or phone. This makes checking out a lot faster, which is crucial as retailers’ sites get quickly bogged down, leading to people losing their chance of securing a PS5.

    Third tip: Keep checking back with this post and follow CNET and Oscar Gonzalez on Twitter for updates.

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    Amazon Stock Will Hit $10000 Sooner Than You Think

    AMZN stock continues to astound

    In January 2018, I predicted that Amazons business would continue to grow at a rapid pace, pushing Amazon stock all the way to $10,000.

    Of course, I wasnt suggesting it would happen immediately. Rather, it might take as long as 7.5 years to get there, which would still result in an annualized return of 33% for Jeff Bezos and company.

    Since then, the markets have experienced two major corrections.

    The first saw the S& P 500 go into full-on bear mode, falling 14% in the final quarter of 2018, making it the worst quarter for the index since 2008. In the process, it put the year-to-date return in negative territory. Talk about a reversal of fortune.

    How did AMZN stock fare in that years fourth quarter? It lost 25% to close well down from its 52-week high of $2,050.50.

    The second major correction came in March of this year when the hit the index hard, resulting in a 12.5% decline on the month. Thankfully, the markets bounced back in April, gaining 12.7%, the best one-month gain since 1987.

    How did AMZN stock fare in March and April? It gained slightly more than 31%, falling to a low of $1,626.03 on March 16 before recovering nicely.

    Since my January 2018 prediction, Amazon stock is up 101% and on the way to $3,000.

    Amazon stock remains on the path to $10,000. To get there by my original timeline, the company only needs a couple of its big initiatives to be successful.

    Here are two that Im watching:

    Amazon Stock: Why Wells Fargo Sees 20% Upside

    Amazon – has been the worst-performing stock among the FAANG group, which also includes MetaGet Meta Platforms Inc. Class A Report, AppleGet Apple Inc. Report, NetflixGet Netflix, Inc. Report, and AlphabetGet Alphabet Inc. Class A Report. In fact, its shares have lagged both the S& P 500 and the Nasdaq Composite this year .

    A bad year for the stock? Maybe.

    A bad year for the company? Not so fast.

    Robert Coolbrith from Wells Fargo just published his opinion on AMZN. The analyst believes the investments the e-commerce behemoth has been making during 2021 may flourish in 2022. Yet the analyst warns against the stocks risks, which may not be as fleeting as we thought.

    Lets dig into his analysis.

    Figure 1: Amazon Go store in New York, NY.

    Amazon Maven | Daniel Martins

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    Here’s Why Amazoncom Stock Is Down Today

    Amazon.com stock is plunging this afternoon after Apple signed up for Alphabet’s Google Cloud.

    NEW YORK — Amazon.com – stock is declining 2.40% to $560.51 in mid-afternoon trading on Thursday, as Alphabet’s Google Cloud Platform won Apple 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 $400 million and $600 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 Azure in the public cloud.

    However, Pacific Crest contends that the cloud services market provides a $25 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 Stock Analysis: Amzn Shares Lagging The Market

    Why is Amazon Stock Going Down and Should You Buy or Sell ...

    Amazons stock entered 2021 trading just shy of $3,280. After briefly dipping below the $3,000 mark in March, buying momentum picked up and by July the price had hit a fresh all-time high of $3,773.08.

    But the momentum was short-lived, and bears won the Amazon shares buy or sell tussle. Shares fell to the $3,200 level by the end of the summer and investors rejected a test of the $3,500 level in September.

    What this means is that Amazons stock is up just 1.9% from the start of 2021 through mid-October. Over the past one-year period, shares are down 5.7%. By comparison, the Nasdaq Composite index is up 14% from January through mid-October 2021 and up around 22% over the one-year period.

    Does this mean investors should buy Amazons stock?

    Amazon stock seems to have found strong support at the $3,200 level and again at the $3,000 mark. Granted, Amazons stock is not guaranteed to bounce back from these levels. In fact, a dip below the $3,000 level may imply that Amazons stock could remain weak for some time.

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    Downside Risks Still Exist

    Despite the fact that Wall Street analysts share positive sentiment on Amazon’s stock performance, investors should be aware of downside risk. Potential negative outcomes need to be balanced with positive ones in order to complete a useful AMZN stock analysis.

    One of the more notable risks relates to currency fluctuations. As the global market continues to grow, the company needs to convert foreign currency to its base currency, the US dollar. Even small fluctuations can have a noticeable impact on Amazons bottom line, thereby impacting earnings.

    Another risk to consider is the growing competition in the online retail space from small and large competitors. In particular, Walmart and Target have the financial flexibility and know-how to match Amazons moves. The same holds true in foreign markets that Amazon hopes to conquer. India in particular is a lucrative and fast-growing market, and Amazon needs to battle local companies that hold home-court advantage.

    Covid-19 remains one of the key factors to watch. Amazons stock performance can be linked to the post-pandemic market. Covid lockdowns that prevented people from leaving their homes contributed to the companys revenue growth amid an e-commerce boom. However, the trend could reverse as shoppers return to the high street. On 6 October 2021, the company announced the opening of its first bricks-and-mortar Amazon 4-star store outside the US.

    The Unintended Consequences Of Spitting Shares

    Stocks splits make shares more volatile because shareholders more closely track price changes than percentage changes. Double the stock price affected its volatility from 20% to 30%. The more volatile the shares the more likely they will find their magic number on which they may exercise their right. According to analysts, given Amazons performance in recent years despite doubling the share price since 2019 it is hard think that executives are needed to launch such bogus rumor. To this end, company officers would be in favor of splits.

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    Ibm Misses Revenue Estimates On Drag From Legacy It Unit

    — International Business Machines Corp. reported revenue that missed analysts estimates, highlighting the challenge of fulfilling its pledge to return to growth this year as it prepares to spin off its low-growth legacy computer services unit. The shares dropped in extended trading.Most Read from BloombergGoogles Biggest Moonshot Is Its Search for a Carbon-Free FutureA $30 Billion Fortune Is Hiding in Chinas Silicon ValleyBeef Industry Tries to Erase Its Emissions With Fuzzy Meth

    Expectations For The Third Quarter

    Mark Cuban says Amazon stock will keep going ‘up up up’ because of behavior changes amid Covid-19

    Amazon did provide guidance for the third quarter, unlike some other tech companies. The company expects net sales in the third quarter of 2021 to be between $106 billion and $112 billion, reflecting an increase of 10% to 16% from the same period last year. Amazon expects that its operating income in the third quarter will be between $2.5 billion and $6.0 billion. Even the high end of this range would be a decline from the third quarter of 2020, which saw operating income of $6.2 billion.

    The company indicated that the third quarter of 2020 was outstanding, due to the increase in online shopping resulting from the pandemic. This means that the comparison of this years third quarter to last years will be challenging. Thus, the company expects lower operating income in the third quarter of 2021 than it saw in the same quarter last year.

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