Amazon’s stock is down 14.38% after hours on a weak earnings report. It joins a list of big tech stocks plummeting toward what should be close to their bear market lows.
Meta Platforms fell 24.56% on an earnings miss being blamed on unexpected metaverse spending. But in reality, all big-cap tech stocks are now plummeting during this bear market which hints at a weakening economy that central banks are purposefully trying to tank in order to bring down inflation.
It’s hard to say how low Amazon’s price will fall; however, we don’t expect it to fall as far as Meta Platforms did. One of the reasons for that is that its stock was just in the midst of forming a strong multiple bottom. Multiple bottoms can certainly be broken, but they’re not typically broken by further large falls as much as 25% in as little as a few weeks. That being said, Jeff Bezos did sound quite bearish about his own stock several months ago once it had started to fall close to $100 in June and July, so it could be Bezos is still expecting a decline that could go considerably further than the $95 it is set to open at tomorrow.
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