The biggest concern for investors is whether Amazon.com, Inc. (NASDAQ:AMZN) has hit rock bottom and may start to retrace its way back to the top. Fox business, Charles Payne, maintains it might be too late to place a Put option on Amazon as the stock might have clocked its lows to trigger a resurgence.
“Amazon.com, Inc. (NASDAQ:AMZN) the high was $408 the lowest $287 and the close $297. We are already $100 off of the high, and it was actually a big today; traded 10 million shares, it normally trades less than 5 million shares. It looks like someone has started to buy it today to accumulate so I would necessary not be a buyer,” said Mr. Payne
A further decline in the stock according the analyst looks unlikely as CEO, Jeff Bezos, looks to be dictating the way the company will move going forward; the street having failed to convince him otherwise. A number of investors have continued to raise concerns about the CEO reluctance to pursue shareholder value something that has seen many bets placed against the company’s long-term prospects.
A bone of contention has always been on the way Amazon.com, Inc. (NASDAQ:AMZN) operates opting to pursue growth opportunities at the expense of generating shareholder value. Bezos has with success shunned criticism coming his way on the way the company has been run in the recent past; opting to pursue opportunities that he believes are vital to generating long-term value.
The effects, of pursuing growth opportunities, have seen Amazon.com, Inc. (NASDAQ:AMZN)’s margins substantially suppressed as expenses continue to surge affecting the ability of the company to hit profit levels. Betting against the company at the moment is sure to be a risky affair as the company might have clocked its lows having lost more than $100 in valuation.
Penn Financial Group founder, Matt McCall, believes it might be best to stay clear of the stock in the short term waiting to see if it will bounce back or continue to slide.
“I love being an Amazon.com, Inc. (NASDAQ:AMZN) customer; I don’t think I want to own their stock. Sometimes it is better to be a user of a service than to be a shareholder. […] They are currently trading at the lower trend of their one-year range,” said Mr. McCall.
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