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.
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.
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.
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.
Barnes & Noble is having a good end to the year, thanks to the gift that keeps on giving -- the Nook.
British book publisher Pearson (PSO) said Friday that it would pay nearly $90 million in cash for a 5% stake in Barnes & Noble's Nook division. Microsoft (MSFT) already owns a 16.8% stake, leaving Barnes & Noble with 78.2%.
That was enough to offset any disappointment over Barnes & MORECatherine Tymkiw - Dec 28, 2012 1:52 PM ET
Amazon.com is in advanced negotiations to buy the mobile chip business of Texas Instruments, according to Israeli newspaper Calcalist, which would put the online retail giant on the path to becoming a manufacturer of smartphone and tablet processors.
Shares of Dallas-based TI (TXN) rose nearly 3% following the report, while shares of Amazon (AMZN) declined slightly.
Amazon's Kindle Fire tablet is currently powered by a TI processing chip, and the company has MOREHibah Yousuf - Oct 15, 2012 12:44 PM ET
|Martin Shkreli fraud trial begins next week|
|With cameras banned, CNN sends sketch artist to White House briefing|
|Drugmaker fined $100 million for hiking price of drug for infants 85,000%|
|Silicon Valley rocked by sexual harassment claims|
|SeaWorld subject of federal probes related to CNN's 'Blackfish' documentary|