$Amazon.com(AMZN)$ I believe it’s essential to consider the risks tied to over-exuberance. With major players like Amazon, $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Apple(AAPL)$ reporting, I see heightened expectations already built into their stock prices. Instead of aggressively taking positions, I prefer adopting a defensive strategy, focusing on the potential for disappointing earnings or guidance to trigger pullbacks, especially considering regulatory pressures on Alphabet and rising competition for Amazon.
For this reason, I would consider shorting high-expectation stocks like AMZN or taking put options, anticipating that advertising challenges and ongoing legal risks could dampen market sentiment, even if quarterly numbers meet estimates. I also find that while Amazon’s AWS segment is expected to perform well, there are concerns about its broader retail business margins that could disappoint amid mixed economic signals.
Rather than betting on strong results propelling tech stocks higher, I’d be inclined to hedge my exposure, taking advantage of any overly bullish moves to enter short positions at elevated levels.
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