Shares of Amazon AMZN 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, Alphabet GOOGL, and Microsoft MSFT.
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 and Walmart WMT. On top of e-commerce and Prime memberships, Amazon aims to better challenge Netflix NFLX and Disney DIS 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?
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research