Amazon down by 11% how could that have happened? Google going down as well that is an major upset. So then how much does the Amazon dividend stock cost right now?
What are you talking about? Amazon doesn't offer a dividend, and it probably won't for quite some time until it finds out how to be massively profitable, rather than pulling in large amounts of revenue only. It's not surprising that the stock has dropped 10% because it's highly overvalued.
I think it is just normal activity. Amazon is working on "launching" it's drones but it also rolled out a new kindle program that has unlimited downloads for a set monthly price. It is somewhat like Amazon Prime except for books. They are spending money so it is bound to take a dip.
I think the earnings loss and the declining cash flow are something to be at least a little concerned about.
Absolutely. Amazon could right its ship if it found a way to draw more earnings and profits from its digital offerings because margins are much higher for digital products. I don't know how the company could possibly fix its overall issue with profitability, though. The infrastructure is there for the company to succeed, but it still has to figure out how to make that infrastructure truly profitable. Raising Amazon Prime rates a little bit higher could temporarily halt earnings losses, but consumers wouldn't exactly respond well to that since an increase was made just a few months ago.
At this point, the biggest concern with Amazon's stock isn't that the earnings don't look good. It's that the stock is falling out of favor with portfolio managers. I wouldn't try to call the bottom here. It might take a little while for funds to pare back their holdings and reallocate to less "disappointing" stocks.
Eventually Amazon has to start to turn a profit or we can expect the stock to falter. The company is getting so big that it's going to run out of room to keep growing as fast as it has in the past and Bezos better start to improve the bottom line. Stockholders have been waiting for many years for this to happen, and perhaps they are starting to run out of patience.
