When Will Amazon’s Slide End?
Amazon (NASDAQ:AMZN) is one of the worst-performing stocks in the S&P 500 this year, with shares down nearly 22 percent. With the stock in bear market territory, how much further will this former high flier fall?
To those who have been following the stock closely, this decline should come as no surprise. The stock has been an outperformer for many years, and it has made fortunes for its long-term shareholders. Analysts were coming out with increasingly more bullish reports and price targets as the company’s dominance in the rapidly growing e-commerce space has grown. Such bullishness is unsustainable, and with the shares topping $400 apiece at the end of last year, the stock ran out of steam.
I think there are a lot of investors out there who missed the upswing in Amazon shares and who are looking for an entry point. Sure, $312 per share certainly looks a lot better than $400 per share, but is this the end of the pain?
I think two things stand in the way of a bottom, and this means that the stock can continue to slide.