Amazon (AMZN) shares dropped 7.6% after the company reported first-quarter profits that were below expectations on Thursday evening.
Chief executive Jeff Bezos warned that the company expects to have to spend heavily in the second quarter to get products to consumers and keep employees safe during the pandemic.6 days ago
Why did Amazon’s stock drop?
Amazon shares fell as much as 9% in after-hours trading Thursday following its third-quarter earnings report, with the stock recovering to a 1.3% loss by Friday afternoon. The move was in part due to Amazon’s return to investing heavily in its business, which weighed on profitability.
Is AMZN a good buy now?
AMZN Stock is the Winner
Now that it’s held up much better during it, and given the nature of its business, Amazon looks like the better buy for the years to come. If you want to know what other stocks are holding up well amidst the current carnage, consider taking a trial subscription to Cabot Top Ten Trader.
Why do stocks drop?
If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
Is Amazon stock going to split?
The long pause. Yet throughout the rise that eventually sent the tech giant toward a $1 trillion market cap, Amazon has never done another split. Even a brief move in the share price above $2,000 during 2018 didn’t prompt a move. CEO Jeff Bezos has historically shown no real interest in doing further stock splits.