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Amazon.com Inc. (AMZN - Free Report) is the world’s first public company to shed a trillion dollars in market value (per Bloomberg) as high inflation, tightening monetary policies globally including the Fed and unsatisfactory earnings updates instigated a historic selloff in the stock this year.
Shares in the e-commerce and cloud company nosedived 4.3% on Nov 9, pushing its market value to about $879 billion from a record close at $1.88 trillion on July 2021. Amazon and Microsoft Corp. (MSFT - Free Report) both were in the race to touch the undesirable landmark. As of November 9, MSFT had $1.674 trillion and AMZN had about $878.77 billion in market cap.
Growth stocks (tech stocks are high-growth in nature) have been shattered throughout the year due to Fed rate hikes and rising rates. Fears of a recession have further weighed on sentiment in the sector. The top five U.S. technology companies by revenue have seen nearly $4 trillion in market value vanish this year, the Bloomberg article noted.
Last month, Amazon projected the slowest revenue growth for a holiday quarter in the company’s history as shoppers reduce their spending in the face of economic uncertainty. That sent its market value below $1 trillion for the first time since the pandemic-fueled rally in tech stocks more than two years ago.
For fourth-quarter 2022, Amazon expects net sales between $140 billion and $148 billion. Net sales are expected to grow 2-8% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for net sales before earnings release was at $156.3 billion. Management projects an unfavorable foreign exchange impact of 460 bps. Operating income is anticipated between $0 and $4 billion.
The Zacks Consensus Estimate for the earnings for the upcoming quarter is 0.25, down 82% year over year while estimate for sales for the upcoming quarter is $146.89 billion, up 6.90% year over year. The earnings estimate for the 2022 is negative 0.05, down 101.54% year over year while sales estimate for 2022 is $511.59 billion, up 5.89% year over year.
Against this backdrop, investors may want to short Amazon through an inverse ETF. Below we highlight a fund in detail Direxion Daily AMZN Bear 1X Shares (AMZD - Free Report) .
AMZD in Detail
Direxion Daily AMZN Bear 1X Shares (AMZD - Free Report) seek daily investment results, before fees and expenses, of 150% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Amazon.com, Inc. The fund charges 97 bps in fees. AMZD was up 4.31% on Nov 9, 2022. The fund gained 29.8% past month. The fund is also up 45% this year.
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Amazon Loses $1T Market Value: Time for AMZD ETF?
Amazon.com Inc. (AMZN - Free Report) is the world’s first public company to shed a trillion dollars in market value (per Bloomberg) as high inflation, tightening monetary policies globally including the Fed and unsatisfactory earnings updates instigated a historic selloff in the stock this year.
Shares in the e-commerce and cloud company nosedived 4.3% on Nov 9, pushing its market value to about $879 billion from a record close at $1.88 trillion on July 2021. Amazon and Microsoft Corp. (MSFT - Free Report) both were in the race to touch the undesirable landmark. As of November 9, MSFT had $1.674 trillion and AMZN had about $878.77 billion in market cap.
Growth stocks (tech stocks are high-growth in nature) have been shattered throughout the year due to Fed rate hikes and rising rates. Fears of a recession have further weighed on sentiment in the sector. The top five U.S. technology companies by revenue have seen nearly $4 trillion in market value vanish this year, the Bloomberg article noted.
Last month, Amazon projected the slowest revenue growth for a holiday quarter in the company’s history as shoppers reduce their spending in the face of economic uncertainty. That sent its market value below $1 trillion for the first time since the pandemic-fueled rally in tech stocks more than two years ago.
For fourth-quarter 2022, Amazon expects net sales between $140 billion and $148 billion. Net sales are expected to grow 2-8% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for net sales before earnings release was at $156.3 billion. Management projects an unfavorable foreign exchange impact of 460 bps. Operating income is anticipated between $0 and $4 billion.
The Zacks Consensus Estimate for the earnings for the upcoming quarter is 0.25, down 82% year over year while estimate for sales for the upcoming quarter is $146.89 billion, up 6.90% year over year. The earnings estimate for the 2022 is negative 0.05, down 101.54% year over year while sales estimate for 2022 is $511.59 billion, up 5.89% year over year.
Against this backdrop, investors may want to short Amazon through an inverse ETF. Below we highlight a fund in detail Direxion Daily AMZN Bear 1X Shares (AMZD - Free Report) .
AMZD in Detail
Direxion Daily AMZN Bear 1X Shares (AMZD - Free Report) seek daily investment results, before fees and expenses, of 150% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Amazon.com, Inc. The fund charges 97 bps in fees. AMZD was up 4.31% on Nov 9, 2022. The fund gained 29.8% past month. The fund is also up 45% this year.