Amazon has been clobbered over the last few weeks following its latest earnings report taking the shares down to levels not seen since mid-2020 i.e. the “buy the dip” attitude has clearly waned towards growth stocks. Unlike Netflix (NFLX US) which is facing serious risks to its business model AMZN experienced some weak e-commerce results in the short term but one quarter doesn’t set a trend. Amazon Web Services continues to deliver strongly and while the on-line goliath has suffered from recent inflation pressures such as construction costs and labour shortages, these hopefully will prove to be transitory issues. While we see no reason to panic Its likely to be a while until AMZN regains market traction and MM are looking to cut our holding into a bounce – hopefully!
MM is now neutral Amazon (AMZN US)
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