The stock market slid on Tuesday as uncertainty over interest rates cuts looms. Investors were also digesting the recent rally to all-time highs, and remained focused on Fed Chair’s testimony on Wednesday.
Overall, S&P 500 declined 1.0% to 5,079, while NASDAQ fell 1.7% to 15,940. Apple dragged down tech stocks as iPhone sales reportedly fell 24% in China.
Tweet of the Day
https://twitter.com/Mayhem4Markets/status/1762818604410495399
Chart of the Day
Here is the one-year chart of Amazon (AMZN) as of February 13, 2024, when the stock was at $168.
Amazon is showing its past sluggish growth days of the previous year as it had a record-breaking holiday shopping season. Its special shopping events like Prime Big Deal Days and Black Friday/Cyber Monday brought in lots of new Prime members and boosted sales. In the end, revenue growth accelerated in the company’s three divisions: Retail, International Retail, and Amazon Web Services (AWS). Profits zoomed higher as management sped up deliveries by utilizing eight regional warehouses in the US instead one big warehouse. It also expanded same-day delivery options, which resulted in happier customers happier and made Prime members who bought more often. Overall, the company delivered $1.00 in profits last qtr (EPS) vs $0.25 a year ago, +300% profit growth. Revenue rose 14%.
Amazon is part of the Growth Portfolio and Aggressive Growth Portfolio. Quarterly profit growth has been exceptional the past three quarters and that’s expected to continue.
