Amazon’s (NYSE: AMZN) stock has plummeted 26% since the beginning of 2022 after the company’s retailing and advertising revenues fell short of expectations.
On Thursday, April 28, the company released its earnings, reporting a net loss of $3.8 billion for the quarter, a considerable drop from the same quarter in 2021 when it earned $8.1 billion in profit.
Revenue grew 7% to $116.4 billion, slightly beating estimates, but the company also said revenue growth would slow down to 3-7% for the next quarter. On Monday, May 2, Wedbush removed Amazon from its best ideas list due to investment price discipline.
Wedbush continues to hold an Outperform rating on the stock with a price target of $3,500; however, the wealth management company kept other tech names like Google (NASDAQ: GOOG), Microsoft (NASDAQ: MSFT), and Apple (NYSE: AAPL) on its list.
AMZN charts and analysis
After Wedbush removed the stock from their list, the shares fell by roughly 1.5% in premarket trading. During the trading session, the stock continued to fall below the resistance line it created in 2022 at around $2,690.
The shares are currently below all daily Simple Moving Averages and are looking to create new resistance lines as it seems; higher volume equates to the sale pressure the stock has seen throughout the previous couple of sessions.
Amazon’s average price prediction for the next 12 months has also dropped from $4,144 in March to $3,704. Analysts still give the stock a strong buy rating, with 38 analysts on the buy-side and one on the hold and seLL sides. Only recently did an analyst give Amazon shares a sell rating.
Despite some bad news with the earnings and some analysts removing AMZN from watchlists, there is still optimism on Wall Street around the company. This optimism is generally seen in the business’s advertising and cloud computing segments, which are expected to grow.
Catalysts like Amazon Prime Day could still possibly help the company sell more merchandise than traditional retailers do in a week’s time. It is difficult to be bearish on Amazon for a prolonged time; macroeconomic headwinds are creating some cautious investors; however, it is by far the biggest e-commerce player in the world.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.