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Amazon falling out of favor?

January 29, 2013: 11:26 AM ET
Click chart for more on Amazon's stock

Click chart for more on Amazon's stock

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.

$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.

$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.

RT@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.

Amazon margins to triple or quadruple, Victor Anthony says - $AMZN

$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.

  • Amazon: Great company, WAY overvalued stock

    The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, and Abbott Laboratories, La Monica does not own positions in any individual stocks.

    I love Fantastic customer service. Prices are great. And as an avid reader who still likes physical copies of books (call me a Luddite if you must), the free shipping that comes with being an MORE

    - Sep 6, 2012 3:40 PM ET
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