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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.

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