What Would Have to Go Wrong at Amazon.com to Make It a Sell?

Since announcing its first-quarter earnings after the market close on April 24, Amazon.com (NASDAQ: AMZN  )  shares have fallen over 10%. The Internet retailer's stock fell largely due to an admission by the company's founder and CEO Jeff Bezos that his spending binge, on projects ranging from Amazon Fire TV to the company's own delivery service, is not slowing down anytime soon. This of course has led investors to wonder when actual profits at Amazon.com will begin to materialize.

Despite the drop, Motley Fool consumer goods analyst Sean O'Reilly doesn't see Amazon's dominance over the Internet retail industry stopping anytime soon. Which raises the question: What would have to happen to put Amazon.com's entire business in jeopardy?


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  • Report this Comment On April 30, 2014, at 7:28 AM, yosoykarlos wrote:

    I'm a Motley Fool Stock Advisor subscriber--and a cheapskate. And I own a few shares of Amazon. I live in VA and I think I've been paying sales taxes on Amazon purchases for a year or more now. That doesn't really bother me. I shop online as much as possible because of the convenience, and time-saving not to mention saving gas for my car. Also there's the ability to compare products and get user reviews. But what I will not pay is shipping costs. I also won't pay the fee for Amazon Prime. So I wait until I meet the $35 minimum for free shipping--although this probably does induce me to buy more stuff from Amazon. For that reason, too, I like Walmart's "Site to Store" policy where you order online and pick up in the store--no shipping charge-- although I don't use it much because the product selection isn't as good as Amazon. I was chagrined recently to find that JC Penney doesn't have that plan. They charge, I think, $2.85 to deliver to the store, which isn't much . . . but still, when you're a cheapskate!

  • Report this Comment On April 30, 2014, at 9:38 AM, BLUESCITYLEON wrote:

    Yeah tie up your money in a declining stock? NO, wait until it stops droping 10% at a time at least, and average in. nibble in on dips after the trend starts up above the moving average.

  • Report this Comment On April 30, 2014, at 9:43 AM, BLUESCITYLEON wrote:

    The chart stinks for Amzn, it's breaking down some stocks don't come back. Make the chart tell you the fundamentals you think you know are true.

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