Based on the Trefis AI engine there is a pretty meaningful, 9% chance that Amazon stock could see a single day drop of 3% or more.
Take this to the next extreme of 5% or greater single-day drop, and the chances that Amazon will bounce back in the subsequent week are still pretty strong 27%.
Will Amazon stock drop again?
Based on the Trefis AI engine there is a pretty meaningful, 9% chance that Amazon stock could see a single day drop of 3% or more. This is countered by a solid 33% chance that the stock will, in fact, bounce back from such a drop in the subsequent week.
Is Amazon stock a good buy today?
Amazon stock is currently not a buy, though conditions are improving. The stock is currently in a consolidation phase, with a buy point of 2,185.95. Buying stocks in a bear market comes with a high risk. It’s wiser for investors to place well-performing stocks on their watchlist for further evaluation.
What causes stock prices to drop?
Stock prices change everyday by market forces. 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. Understanding supply and demand is easy.