🌐 Amazon announced results yesterday and the stock is experiencing a decent drop!
📉 Stock drops by more than 12 % after the earnings release shows how sensitive the market is to the performance of big tech companies. Amazon $AMZN+1.8% beat earnings per share expectations in the second quarter ($1.26 vs. $1.04 estimate), but revenue of$148 billion fell short of analysts' forecasts.
Amazon
AMZN🌥️ Hope came from the cloud division Amazon Web Services (AWS), which reported revenue of $26.3 billion, exceeding expectations ($26 billion) while significantly outperforming last year's results. AWS confirms its position as one of the company's main pillars of growth, with the potential to generate over $105 billion annually. This segment is proving to be strategically key, especially in the context of growing demand for generative tools AI.
💼 Challenging investments in the future are inevitable. Amazon, like other technology leaders, is investing heavily in infrastructure and development to keep up with the rapid pace of innovation. In the first half of the year, it spent over 30 billion dollars in capital expenditures, primarily due to the growing demand for services AWS. This trend is expected to continue in the second half of the year.
🏷️ Competition and Innovation: In the field of e-commerce Amazon faces increasing competition from players such as Temu and Shein, who specialize in low-cost, factory-direct goods. The answer Amazon is to develop its own discount digital store to attract customers in the fashion and lifestyle segment. The company must also adapt to wary consumers looking for bargains.
📊 Strategic challenges and opportunities: Amazon is not the only one facing challenges. Other giants have experienced similar difficulties, such as Microsoft a Alphabet, who have also underperformed in some areas. In contrast, Meta a Apple exceeded expectations and recorded growth.
🔮Due to the rapid development of technology and changes in the economy, it is necessary to carefully analyze the market situation and adapt the investment strategy. Short-term fluctuations can hide long-term opportunities, especially in sectors with high growth potential, such as AI and cloud services.
Amazon
AMZN💡Amazon and other tech giants continue to innovate despite short-term challenges. The opportunities for growth and long-term gains are still there, it's just a matter of getting the timing and strategy right.
What's your take on Amazon, did anyone overbought in the downturn?
The decline was really decent during the session. Eventually, however, the price got at least a little higher and ended the week with an absolutely luxurious pin bar on the daily chart. Could this be a buying opportunity?
It's a great company and the current downturn is creating a nice discount, but I don't have the stock in my portfolio and won't be buying it.