Amazon falling out of favor?
January 29, 2013: 11:26 AM ET
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Just days after nearly hitting a new all-time high, shares of Amazon (AMZN) are faltering ahead of its earnings report, due after the bell Tuesday.
That begs the question: What do investors know that the rest of us don't? Probably not much, but the stock decline may be signaling some jitters.
Shares were down more than 2% Tuesday.
It's not too big a stretch for investors to be a little on edge, given Amazon's less-than-stellar third-quarter report.
This time around, analysts are anticipating a strong quarter, led by a 28% jump in revenue. That may sound pretty solid but some, like JPMorgan, are lowering their expectations for holiday sales "to reflect good (but not great) U.S. e-commerce trends during the holiday."
Did you buy a Kindle this year?
And while BGC Partners tech analyst Colin Gillis is hopeful Amazon will turn a profit, he's keeping a "hold" rating on the stock and says he prefers eBay (EBAY).
StockTwits traders weighed in with their own expectations.
BPGAG
$AMZN ugly reversal from 285 area and now #earnings are a total gamble - #traders always have an edge - live to #trade another day #stocks
Couldn't have said it better myself. But then again, isn't all trading kind of a gamble? Welcome to the casino of Wall Street.
TrendHunter$AMZN $EBAY already knew of consumer #s ... there are no secrets / no level playing field - gotta play the odds
Good point TrendHunter.
Barnes & Noble (BKS) took a hit from sluggish Nook sales so it's little wonder there may concern about how many of those sales shifted to the Kindle, if any. By all accounts, it was a relatively modest holiday season for retailers overall, both online and traditional.
HarryWangerRT@MrWallstreet $AMZN so everyone expects this to disappoint? -They're taking profits. Afraid of $AAPL type fall and locking in gains.
Need I say more? I'm not sure Amazon will have quite the sharp sell-off that Apple did but then again, who knows? Investors are a fickle bunch and if the news is really disappointing, they may opt to bail out.
nyckennedyAmazon margins to triple or quadruple, Victor Anthony says - http://t.co/HHr57Hnj $AMZN
SteelCahones$AAPL Wait, what? People actually care about a company making a profit? $AMZN $YHOO$RIMM
Haha . Good one. People always care about profit, but they also like their new shiny gadgets. Stay tuned for Amazon -- only 5 hours to go.
