Amazon ($AMZN), is just having a bad time with it’s stock plummeting from highs, today the sto
ck is down 3% in trading.
Amazon is the largest online retailer of a variety of products from its ebook and now tablet, to electronics to appliances and even food. But now, Amazon is starting to show its cracks.The stock price has dropped considerably from its highs of $246 in September to now below $170, does this sound like doom for Amazon? Given retailing is a hard market to make huge margins on Amazon, like Walmart ($WMT) will have to increase volume to keep at its sales targets and maybe expand into new areas of the market.
We know Amazon is near break-even territory when it comes to the cost of the Kindle Fire, but can Amazon make inroads compared to it’s closest competitor, Apple ($AAPL)?
If we look at a 5 year chart of Amazon’s stock price, the outlook is bleak. It’s support levels of around $160 could be breached and then from there, it’s anyone’s guess as to where the stock will end up.
Don’t get me wrong, Amazon is a great company and all, but as an investment, I’d hold off on this stock until things look a little better.
