@Bunifa Latif：$Amazon.com(AMZN)$ For years, Amazon seemed invincible, an e-commerce giant that made other companies shiver when it muscled into their markets. It helped Amazon stock soar into four-digit territory. And Amazon earnings reports often delighted investors. But is Amazon stock still considered a buy? The company proved vulnerable in April after it uncharacteristically fell far short of Wall Street's forecast when it reported an unexpected first-quarter loss. Amazon stock plunged 14% in reaction, its largest one-day drop since July 2006. Investors wondered whether the disastrous earnings report was an isolated fluke or a sign of things to come. Some on Wall Street contended the e-commerce titan just needs a few tweaks. But others say it's time for hard-charging Amazon to pause and rethink its strategy. Amazon Stock Plunges On Earnings Report Amazon stock plunged in late October after reporting third-quarter results that beat on earnings but gave an outlook that fell short. Revenue climbed 15% from the year-ago period to $127.1 billion. That marked a return to double-digit gains after three straight quarters of growth in the single digits. But for its fourth quarter, Amazon said it expects revenue in the range of $140 billion to $148 billion. The midpoint of $144 billion is below estimates of $155.1 billion. Then in mid-November, Amazon announced that layoffs were coming, but did not specify how many jobs would be cut. The New York Times, citing unnamed sources, reported that the retailing giant would cut 10,000 employees from its payroll. That's about 3% of its workforce. The cuts will focus on Amazon's devices organization, including the voice assistant Alexa, as well as at its retail division and in human resources. In a blog post Amazon said, "We continue to face an unusual and uncertain macroeconomic environment." The layoffs fit a pattern. Numerous companies are reporting layoffs. Tesla (TSLA) Chief Executive Elon Musk slashed the Twitter workforce in half, after he finished buying the company for $44 billion. Other technology companies that have cut staff include Facebook-parent Meta (META), Snap (SNAP) and Salesforce (CRM). Move Into The Medical Business Meanwhile, Amazon's acquisition of One Medical is its largest push yet into the health care business, which began with its acquisition of PillPack more than four years ago for a reported $1 billion. That gave Amazon the ability to ship prescription drugs around the country. Amazon stock will face stiff competition in this market as Walmart (WMT), CVS Health (CVS) and other large corporations are placing big bets on expanding revenue through health care services. In November, Amazon announced Amazon Clinic, which provides virtual care to patients in 32 states. In conjunction with Amazon Pharmacy and One Medical, the clinic will offer a message-based service to those seeking treatment for more than 20 everyday medical issues. The move solidifies Amazon's intention to be a major player in the consumer-driven health care space, building out services and capabilities around their other offerings like Amazon Pharmacy and their recent purchase of OneMedical. Technical Analysis Of Amazon Stock In the stock market, timing is critical. So when you're looking for stocks to buy or sell, it's important to do the fundamental and technical analysis that identifies lower-risk entry points that also offer solid potential rewards. Amazon stock is not a buy at this time. @TigerStars DYODD Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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