The stock market dropped slightly on Monday following last week’s major sell-off amid concerns on an interest rate hike.
Overall, S&P500 declined 0.7% to 4,031, while NASDAQ fell 1.0% to 12,018.
In other news, Amazon (AMZN) might lose money this year.
Tweet of the Day
I don’t think most Americans realize how dire the situation is in Europe.
If your utility bill went from $250/month to $2500, discretionary spending would get obliterated. The EU makes up 25% of $SPX earnings.
Corporate earnings will fall off a cliff as the weather cools.
— Endless Capital (@endless_frank) August 27, 2022
Chart of the Day
Our chart of the day is the one-year chart of AMZN as of August 20, 2022, when the stock was at $138.
Founded in 1994, AMZN serves customers through its online and physical stores with a focus on selection, price, and convenience. The company with more than 1 million full-time and part-time employees work to deliver hundreds of millions of unique products that are sold by Amazon itself and third party sellers.
AMZN could lose money this year. The company experienced high inflation in fuel, energy, and transportation costs. So the retail side of the business is losing money, but Amazon Web Services is more than making up for it. The big deal was AMZN’s investment in Rivian, an electronic vehicle manufacturer. If it weren’t for Rivian, David Sharek believes that Amazon would have made a profit last qtr. His Fair Value P/E stays at 45 this qtr.
