The stock market experienced a sharp decline as early gains turned into a selloff, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all falling; concerns over rising bond yields and inflation contributed to the sell-off.
Analysts suggest that Wall Street is underestimating Amazon's stock due to the company's improved e-commerce fulfillment capabilities and potential for margin growth, as well as its resilient Amazon Web Services cloud business.
Boeing stock declines for a second day after a quality issue in the supply chain for the 737 MAX jet, but Wall Street remains optimistic.
Amazon stock outperformed the broader market in August and is expected to continue this trend in September, potentially achieving its longest monthly winning streak in 20 years.
Amazon closed out six consecutive months of gains, marking its longest winning streak since July 2011, with the stock rising 3.2% in August and gaining $423.7 billion in market cap since the streak began, fueled by its recent partnership with Shopify.
Shares of Netflix Inc. fell 0.65% on a rough trading session for the stock market.
The stock market ended the week on a positive note, with gains in mega-cap tech stocks like Apple, Amazon, and Microsoft helping the Nasdaq Composite avoid a fifth straight loss, while the Dow Jones and S&P 500 also had slight gains; however, all three benchmarks closed the week in negative territory.
The stock market opened positively, with the Nasdaq up 0.6%, but later faded; major indexes are below their 50-day moving averages as investors await key economic data midweek.
Amazon stock rallied 3.52% as the overall stock market had a great trading session, with the S&P 500 and the Dow Jones Industrial Average also rising.
Amazon stock gained 3.5% and is approaching a buy point, with a 69% increase this year to outpace the Nasdaq and S&P 500, making it one of the top stocks in the Magnificent 7.
Amazon's efforts to improve profitability have been praised, with its stock potentially seeing further upside if its North American retail business continues to become more profitable, according to a research note from Morgan Stanley.
Despite seeing decent share price growth in the past few months, Amazon.com is currently trading at a fair value, with its future earnings expected to double, indicating a positive outlook for the company.
Despite receiving a "Signature Pick" designation from Wells Fargo, Amazon's stock is down 3.5% due to concerns over the holiday shopping season and potential privacy issues with the new generative AI Alexa, though analysts still consider it a strong long-term buy with a potential upside of 34.5%.
Amazon.com stock rose 0.6% after announcing its investment of up to $4 billion in Anthropic, an artificial intelligence firm.
Amazon stock has fallen 15% recently, but two analysts believe it is a good time to buy.
Amazon.com's stock edged higher during its Prime Day sales event, with the growth outlook for its Amazon Web Services division being the key factor for sustained upward movement.
