A bad day for Amazon yesterday, losing 4.41%
Amazon dropped by 4.41% ($5.96), its largest single-day drop since Jun 7.
Daily trading volume (68 million shares) was above the current multiday average of 50.23 million.
Chart analysis suggests Amazon could begin to recover as it approaches significant support, now 98 cents away from $128.35. Dipping below could be an indication that further losses are ahead.
Technical analysis trend indicators suggest that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored.
Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $128.87, a low enough level to, generally, suggest that Amazon is trading below its fair value.
Overall, the technical outlook suggests Amazon is likely to remain muted for the immediate future, with no clear-cut direction.
Amazon was not the only decliner in the consumer discretionary sector; McDonald's went down 2.16%, closed at $277.2. Nike went down 2.61%, closed at $94.04. Toyota went down to $186.3, losing 1.3% after it closed at $188.75 yesterday.
Though some indicators look better than others in comparison to previous reports, Amazon's overall fundamentals remain slightly under the industry average.
Price to earnings ratio has improved from 769.67 to 104.3, but remains below the industry average. An interesting indicator to look at is free cash flow (FCF). FCF is the cash a company has available to use. It is different from net income in that it includes the expenses of capital goods and changes in working capital. After analyzing Amazon's indicators, the company's FCF was the one to stand out. With a value of -9.42 billion, it is below the competition average and not doing as well as its trailing twelve-month average of 12.66 billion.
Amazon manages to remain at a rating of 'Buy'.
9 days ago Jeff Bezos’s company reached a significant high of $144.85 but has consequently lost 6.6% since then.
So far in 2023, it has been outperforming the Nasdaq by 59.73%.
Amazon's market cap is currently $1.33 trillion
daily trading volume (68 million shares) was above the current multiday average of 50.23 million.
$134.38 billion was Amazon's last reported revenue with 63 cents being the current EPS.