Amazon's Biggest Drop Since 2014 Caps Miserable Month for Tech (bloomberg.com) 27
Amazon shares are tumbling on Friday, with the e-commerce company seeing its biggest intraday percentage drop since October 2011, after it gave an outlook that was seen as disappointing. From a report: Shares fell as much as 13%, taking them to their lowest since June 2020. The selloff erased more than $178 billion off the company's market valuation. Amazon shares are down more than 20% for the month, their biggest one-month percentage drop since December 2018. The slump represents the latest hit to Wall Street's biggest names, which have come under heavy pressure in April amid a tumultuous earnings season and concerns over Federal Reserve policy. The Nasdaq 100 Index has dropped 11% this month, erasing $1.75 trillion off the tech-heavy index's market capitalization.
Burn! Baby! Burn! (Score:2)
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Given that we are not all staying home anymore.. (Score:2)
...given the lifting of lock downs and other restrictions, it is no wonder that people are more likely to buy from physical stores than during the lock downs.
Thus Amazon will lose some of the business from that time, though some peoples' shopping habits have likely changed so likely not all of the growth.
Amazon's guidance is always weird (Score:2)
Amazon's guidance has always been sort of weird, because they don't really play the stock price game. Bezos used to say that explicitly, but the new CEO, well, we'll see.
In any case this quarter's "loss" is because they had to mark down their Rivian stock. The rest of their businesses are chugging away like a freight train.
Price-to-earnings? (Score:2)
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The horror... (Score:3)
Coyote Ugly (Score:3)
If you're invested in tech, get out now. This isn't a minor correction. Tech has been in a bubble for years and it's currently deflating. For many firms, this is going to be a death spiral. Even what you might think of as blue chip tech stocks might not make it (Meta, Alphabet, Cisco). This is all going to unravel over the next two years. Seriously, bookmark this comment and check back with me two years from now. I'll give everyone a dollar if I'm wrong.
This is the moment in the Chuck Jones shorts where the coyote has gone off the cliff but hasn't yet started to fall. It's like after the commercial real estate market crash in 2006 or the "correction" in the dotcom market in 2000. It's the infrasound groan of a glacier just before an ice sheet the size of Rhode Island calves off into the sea. If I had the ability to buy 5 year shorts on tech stocks, I would be doing that right now.
Re:Coyote Ugly (Score:4)
I don't disagree the tech slide will continue for a while. There is going to be a shake out as well, don't doubt you there. However, there will be a big difference between the Cisco, Dell, Microsoft, Amazon, IBM, types that actually make things the SAS providers that actually deliver products people use Oracle, ServiceNow, Salesforce, Cloudflare, and the next-big-thing-ad-supported trash Meta, twitter (betting the deal falls through), google..
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I don't disagree the tech slide will continue for a while. There is going to be a shake out as well, don't doubt you there. However, there will be a big difference between the Cisco, Dell, Microsoft, Amazon, IBM, types that actually make things the SAS providers that actually deliver products people use Oracle, ServiceNow, Salesforce, Cloudflare, and the next-big-thing-ad-supported trash Meta, twitter (betting the deal falls through), google..
I actually mostly agree with you. I would bet on Microsoft and Apple making it through. The problem with specifically Cisco, Dell, and IBM is that they've been rather poorly run in general this last decade. One of the ways they've been poorly managed is that they've outsourced and subcontracted a lot of their actual manufacturing to third parties instead of integrating their supply lines into a more vertical ecosystem.That makes them more vulnerable to a market contraction than they ought to be. And all tha
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Apple doesn't want to do social media itself, so Meta will survive regardless. In a depression I guess Apple could end up swallowing the mobile market and kill Alphabet. Cisco seems be pretty competitive, don't see why they would go under before any of their competition.
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Apple actually makes things. They then sell those things for money. That insulates them a lot. That's probably why they'll survive.
Cisco and IBM also make things. But they're also companies that have been horribly run for a long time. And most of their customers aren't consumers but other tech companies. They also don't actually make all that much of their own products anymore. They've outsourced production to subcontractors. It's not that there's any one thing about Cisco and Big Blue that makes them vul
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Nothing that Meta/NFTverse cannot fix. /s
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In order to service the debt it took on to grow, Facebook needs to essentially refinance its debt. It's like taking out a new credit card to pay off the old credit card. If the new card has a much lower interest rate, this is actually a pretty good deal. The problem is, Facebook is using its stock as collateral. If the stock price dips lower, their collateral is worth less. So they either have to add more collateral, which is difficult, or pay higher interest rates. Stock price is largely determined by trad
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If that's so, given that Facebook is too big to fail, if/when the "Metaverse" fails and so Facebook fails, it's going to bring down a lot of tech with it.
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Now you see where my first comment was coming from. The entire sector is set to implode in a way that might even be bigger than the '08 crash. All those unicorn startups that are financed by debt, have never turned a profit, and have no plausible mechanism to turn a profit are going to wipe out trillions-with-a-'t' of dollars. That's going to tank the whole sector. That's going to cause blue chip tech stocks like Facebook and Alphabet to implode. That's going to take out the whole global economy. Not becaus
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I recently read the history of the Roman arena. Even the emperors who hated it could not shut it down because an enormous amount of jobs depended on it. (To even skip the business of catching, transporting and training 10s of 1000s of exotic wild beasts, consider at some point in one "game" they filled the Coliseum floor with saltwater to fill it with sharks that were to devour the condemned, according to a chronicler; imagine what kind of engineering that required.) Eventually the whole enterprise died out
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Why do you think they've been investing in everything under the sun outside their core business, including self-driving cars? Google makes money almost solely off ads and associated data brokering endeavors. Even a moderate drop in the price for ad buys will devastate them as a company. That's why they made their own browser to compete with Mozilla. That's why they tried to make a social media site to compete with Facebook. It's why they're trying to make a car. Alphabet (nee Google) is now in a position wh
All glory to unyielding growth! (Score:2)
But forget excuses, you can't even have reasons in business. If you stop growing even for a second the jackals of Wall Street (no wolves there) are ready to eat you alive.
You can. (Score:3)
They're called LEAPS. [investopedia.com] Aptly named, right?
There are some tech stocks that are still grotesquely overvalued, but there are some that aren't.
whoops! (Score:2)
Won't someone please think of the share holders!
Not to worry about the "losses"...we will just have to squeeze the warehouse workers and drivers EVEN harder. ...And they won't be able to do anything because they don't have any power!
Being a leader in industry is fun. I get to hurt far more people than just those in the room!
Yeah! (Score:3)
Fuck Amazon. Couldn't happen to a nicer... ...oh, wait... "Delivered". One sec...
My hand-delivered $8 box of knock-off Sonic-care brush heads arrived! Nice.
What was I saying?