Why Amazon Stock Was Taking a Dive Today
Shares of Amazon (NASDAQ: AMZN) were tumbling today after the company missed revenue estimates slightly in its second-quarter earnings report and gave light guidance for the third quarter. The company also warned that consumers were increasingly cautious, echoing comments from other major consumer discretionary companies.
The stock had already surged this year as investors had priced in its recovery, and consequently, a modest miss was punished harshly. Additionally, the broader sell-off on the unemployment report this morning that showed the economy weakening faster than expected also contributed to Amazon's decline as it's a cyclical stock.
As of 10:24 a.m. ET, the stock was down 12%.
Source Fool.com
