Why Amazon Stock Traded Lower Today The e-commerce giant was the target of some mixed commentary courtesy of a Wall Street analyst, while also following the broader market lower. Danny Vena (TMFLifeIsGood) Jan 18, 2022 at 3:08PM Author Bio What happened Shares of e-commerce and cloud computing kingpin Amazon (NASDAQ:AMZN) slumped on Tuesday, shedding as much as 2.8%. As of 2:45 p.m. ET, the stock was still down 2.3%. The downtrend in the overall market no doubt helped to push Amazon stock lower, but mixed commentary by one of Wall Street's finest likely added fuel to the sell-off. So what J.P. Morgan analyst Doug Anmuth cited several near-term headwinds as he trimmed his expectations for Amazon's first-quarter revenue and full-year earnings per share guidance, even as the company performed well during the recent holiday sales season. Anmuth mentioned inflationary pressures, as well as elevated operational and labor costs, as potentially weighing on Amazon's results. IMAGE SOURCE: GETTY IMAGES. Anmuth now expects first-quarter revenue of $120.5 billion, while simultaneously lowering his earnings per share guidance for the full year to $75.17, down from $79.47. That said, he believes these more realistic expectations will help investors as we embark on a new year. "Though our estimates come down, we believe lower expectations should help de-risk shares and [Amazon] will become a cleaner story to own through 2022," Anmuth wrote in a note to clients. Now what Anmuth also cited a number of potential catalysts that could boost Amazon's results. He suggested the company could increase sales of apparel, groceries, and accessories, as well as gaining share in furniture and appliances. Additionally, the company recently increased its fulfillment fees by about 5%, a move that Anmuth believes could add as much as $3 billion to revenue over the coming year. It's worth noting that even though Anmuth reduced his near-term expectations, Amazon remains the investment bank's top pick overall. Anmuth reiterated his overweight (buy) rating, with a price target of $4,350. His price estimate would represent potential upside for investors of more than 34% over the coming year, compared with the stock's closing price on Friday. Amazon hasn't yet confirmed the date of its fourth-quarter and full-year earnings release, but market watchers are expecting the results sometime during the first week of February. 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. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena owns Amazon. The Motley Fool owns and recommends Amazon. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.
All those large tech stocks have more room to go down. Apple, Google, FB, Tesla, MSFT, NVDA and many more. Others like ARKs, PLTR should go down even more. All those retail traders' favorites. All are hyped. Go to buy some banks, energy stocks etc. Do not dump them with large tech stocks.
AMZN goes down because everything goes down. Why are lithium mining stocks going down? For the same reason..
Amazon is one of the only VERY FEW tech stocks from the 2000 bubble that is still around. I am trying to think now who was the other one.... Oh! Audible. That said, have to give Amazon credit, but yeah, they were stupidly over priced at the time, and still are now. But... having an experienced hedge-fund manager running the one-man-show actually did pull miracles. It was just this week I was glancing over old tables from the period, my god I don't even remember those other companies anymore... cept pets.com and the other stupid gimmics like webvan.
Tesla got a little bruised, but not battered too much by end of today's battle. I'm going to offend people, but I still expect Tesla to follow the same pattern GE did...
It's probably a good buy here I'm pretty confident it will be at new ATHs within 2 years and that's a conservative time frame.