Shares of Amazon (AMZN - Free Report) have slipped 6% in the past six months, as Wall Street pulls back from the e-commerce powerhouse over profit concerns. Meanwhile, the S&P 500 has climbed 9%, driven by giants like Apple (AAPL - Free Report) , Alphabet (GOOGL - Free Report) , and Microsoft (MSFT - Free Report) .
Amazon made headlines earlier this week after the company accused President Trump of putting “improper pressure” on the Pentagon to assure that the Amazon wouldn’t land the Joint Enterprise Defense Infrastructure contract, worth $10 billion over the next decade. The JEDI contract instead went to Amazon’s clouding computing rival Microsoft.
But this is unlikely to have any real impact on the company that is projected to pull in $280 billion in revenue in 2019. Therefore, the real issue seems to be Amazon’s earnings, which fell during the third quarter.
The question now is when will investors reward Amazon for investing in its one-day Prime shipping to fight off the likes of Target (TGT - Free Report) and Walmart (WMT - Free Report) . On top of e-commerce and Prime memberships, Amazon aims to better challenge Netflix (NFLX - Free Report) and Disney (DIS - Free Report) in the streaming TV era, and much more.
Amazon stock is currently trading roughly 15% below its 52-week highs and comes in below both its 50 and 200-day moving averages. With this in mind, might Wall Street and investors start to think about buying Amazon based on its long-term growth outlook?
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