Nasdaq AMZN Amazon

The S&P 500 dipped and the Nasdaq ended sharply lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession.

The S&P 500 and the Nasdaq ended lower on Wednesday after a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession.

What happened Shares of e-commerce and cloud computing kingpin Amazon (NASDAQ: AMZN) slumped Wednesday, shedding as much as 3.1%. As of 1:36 p.m. ET today, the stock was still down 2.6%.

The S&P 500 and Nasdaq fell on Wednesday as a growing wave of weak economic data deepened worries that the Federal Reserve's rapid interest rate hikes might tip the U.S. economy into a recession.

A few years ago, Amazon (NASDAQ: AMZN) wowed investors with its earnings increases and top positions in the high-growth industries of e-commerce and cloud computing. The company is still a leader in these two big markets. But Amazon has slipped up in the earnings department.

There's little question that the surest path to long-term wealth generation is investing in the best companies out there and holding them for years, if not decades. That said, investing isn't for everyone and certainly isn't for the faint of heart. Case in point: the Nasdaq Compo

At Holdings Channel, we have reviewed the latest batch of the 20 most recent 13F filings for the 03/31/2023 reporting period, and noticed that Amazon.com Inc (Symbol: AMZN) was held by 14 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good

The S&P 500 and the Nasdaq fell on Wednesday as a slew of weak economic data deepened worries that the rapid interest rate hikes by the Federal Reserve may tip the U.S. economy into a recession.

Amazon ( NASDAQ:AMZN ) has had a strong start to 2023, with shares climbing 21% since the beginning of the year. This impressive performance has left investors wondering whether the stock has more room to grow. According to Mizuho analyst James Lee, although Amazon is likely to face challenges along the way, he believes the stock is a Buy and has assigned it a price target of $135. This would reflect ~33% gains should the stock ultimately reach this target. (To review Lee's track record, click here) Taking a "deep dive" into Amazon's several businesses, and trying to make heads and tails of all the moving parts, Lee admits that Amazon faces some difficulties in 2023 -- and maybe even difficulties that investors are unaware of. Take AWS for example -- Amazon's fastest growing business over the past several years, and the only Amazon segment to produce an operating profit in 2022. Lee warns that his peers on Wall Street have "not fully factored-in the business dynamic of shifting to long-duration contracts that could impact short-term unit prices" at AWS, and are being overoptimistic when they say AWS will grow its revenues a strong 13% this year. The problem, you see, is that as Amazon's corporate clients try to cut costs to weather the current economic downturn, they're consolidating their buying of AWS cloud services at the HQ level, and signing long-term AWS contracts that grant price discounts. This is as opposed to permitting individual departments to sign pay-as-you-go shorter term contracts that yield higher profit margins for Amazon. Now, the plus side of this trend is that it's likely to boost backlog for AWS -- and of course, lock in customers for long-term commitments to provide Amazon with recurring AWS revenue. These are obviously good things. The downside, however, is that when you factor in the discounts Amazon is doling out, it's going to be hard for AWS to grow operating income by analysts' expected 7% this year. Hence, 2023 earnings could be weaker than investors expect. That's the bad news from AWS. The good news lies elsewhere -- at Prime Video for example. Here, Amazon's Prime service made hay while the Covid shined during the pandemic, attracting work-from-home viewers to watch shows developed for Prime Video. The good news and the bad news, though, was that these viewers watched a lot of Amazon content during the pandemic, so Amazon had to keep making more content to satisfy the demand -- and that cost money. Now that Covid is waning, Lee believes Amazon customers will have less time to watch TV. As a result, the content that Amazon puts on Prime Video should last longer before it's consumed and needs to be replaced with fresh content. This should permit Amazon to cut spending on content -- saving perhaps $1 billion this year. At the same time as this is happening, Lee forecasts savings on capital spending across Amazon -- down about $4.1 billion year over year -- even as Amazon saves about $1.5 billion in payroll costs from its recently announced layoffs of 9,000 workers. When all's said and done, Lee comes up with a projection of 7.5% total sales growth at Amazon this year -- $552.6 billion -- with a net profit of $13.5 billion versus last year's net loss. That may not sound like much, given Amazon currently carries a $1 trillion market cap and a 75 current P/E ratio. On the other hand, Lee thinks Amazon will nearly double its income to $26.6 billion next year. His advice: Buy the stock now, before that income doubles. (See AMZN stock forecast ) To find good ideas for stocks trading at attractive valuations, visit TipRanks’  Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Fair Isaac FICO has built a culture of innovation to develop unique IP and AI optimization, digital decisioning, machine learning (“ML”) applications and other analytics technologies. These innovations have helped transform customer experiences and business outcomes at la

Oracle ORCL recently announced its plan to open the second cloud region in Singapore. This would strengthen Oracle’s commitment to South East Asia.Oracle is expanding to meet the fast-growing demand of its cloud services. This would be one of the fastest expansions of a c

The S&P 500 and the Nasdaq slipped on Wednesday as weaker-than-expected private payrolls data for March deepened worries that the rapid interest rate hikes by the Federal Reserve may tip the U.S. economy into a recession.

Wall Street's main indexes were set for a subdued open on Wednesday as weaker-than-expected private payrolls data for March deepened worries that the rapid interest rate hikes by the Federal Reserve may tip the U.S. economy into a recession.

Amazon (AMZN) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

While growth stocks have rallied a bit this year, they still have a ways to go to recover their earlier highs. The tech-heavy Nasdaq Composite remains down 14% over the past 12 months -- and some stocks are faring far worse. Consider Amazon (NASDAQ: AMZN), for example. Shares of

Apple Inc is set to open its first official retail store in India's financial hub of Mumbai, the iPhone maker said on Wednesday.

FedEx Corp said on Wednesday the delivery firm will consolidate its operating companies into one organization, as part of its plan to slash $4 billion in permanent costs by the end of fiscal 2025.

Tesla (NASDAQ: TSLA) is increasing sales briskly. Amazon (NASDAQ: AMZN) is one of the biggest companies in the world. This video will consider which stock will increase more in value over the next three years.

On April 5, 2023, Needham reiterated coverage of Amazon.com with a Buy recommendation. Analyst Price Forecast Suggests 31.18% Upside

Designed to provide broad exposure to the Style Box - All Cap Blend category of the market, the FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) is a smart beta exchange traded fund launched on 09/16/2011.