In the past six months, Wall Street seems to be a little upset from Amazon as the AMZN stocks have slipped down near 6%. Whereas the S&P 500 has risen to 9%, which includes giants like Alphabet GOOGL, Apple AAPL, and Microsoft MSFT.
Recently, Amazon accused President Trump of putting pressure on Pentagon, which denied Amazon from landing a contract worth $10 billion with the Joint Enterprise Defense Infrastructure for the next ten years. What made the matters even worse for Amazon is, this contract went to their cloud computing rival, Microsoft.
Even though the numbers are quite high, it probably won’t affect Amazon as they are projected to make a revenue of $280 billion in 2019. So what exactly is the problem? Why is Wall Street not confident about the e-commerce giants?
The real reason lies in Amazon’s earnings, which dropped in the third quarter. Amazon invested heavily in its 1-day Prime shipping to compete against Walmart TMT and Target TGT. Apart from e-commerce, Amazon is also one of the prime challengers to Netflix NFLX and Disney DIS in the streaming era. Currently, Amazon AMZN stock is trading below 15% of its 1-year highs. Moreover, AMZN is also under its 200-day moving averages. It will be exciting to see with all these facts and figures in mind, what will the investors and Wall Street think about buying the AMZN stocks, especially in terms of long-term growth.
What are your opinions on the Amazon AMZN stock? Tell us in the comments below.
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