Amazon stock twists 8% lower following startling $200 billion capex guidance

💡 DMK Insight

Amazon’s 8% drop post-earnings is a wake-up call for traders: The market’s reaction to CEO Andy Jassy’s fourth-quarter results signals deeper concerns about growth and profitability. An 8% loss in a single session isn’t just a blip; it reflects investor skepticism about Amazon’s ability to maintain its previous momentum amid rising costs and competitive pressures. Traders should be wary, as this could indicate a shift in sentiment, especially if the stock fails to hold above key support levels. Look for the $100 mark as a critical level; a break below could trigger further selling pressure. Additionally, keep an eye on related sectors like e-commerce and cloud computing, as they often move in tandem with Amazon. If competitors like Shopify or Microsoft react negatively, it could compound the issue. On the flip side, if Amazon can stabilize and show resilience, it might present a buying opportunity for those willing to take a risk. Watch for any signs of recovery in the coming days, particularly in the context of broader market trends.