Amazon Falling on Good News

The markets are looking for any excuse they can find to bring us into the long expected next recession. There is no better proof of that than yesterday’s bizarre news after Amazon’s earnings call.

Amazon outperformed expectations on every level. Every level. Amazon has been in a freefall since the end of the 3rd quarter of 2018 – for no obvious reason beyond a vague sense of dread at the veiled threats of President Donald Dump.

Here is the lowdown. Amazon has:

  • Led the way in voice devices all the way and put more Alexa devices in the world than any other company by a huge factor
  • AWS revenue grew by 45% – making them even more dominant in this increasingly important space
  • Amazon is making serious in roads into healthcare, travel, and shipping (thus reducing dependence on the USPS)
  • Amazon announced that in 2019 they will be putting more focus on investment in infrastructure, development, and hiring
  • Amazon is a world leader in AI, automation, and other technologies that are changing our world

I can go on, but I shouldn’t have to. On the challenge front, Amazon faces competition in India and China as well as regulation and economic growth issues in the same. Yesterday’s call mentioned that and mentioned the increased focus on investment – and then the shit hit the fan – Amazon briefly jumped to 1750 at the close of the market and then began a bot induced whipsaw between the 1630s and the 1730s – this was nothing more than AI bot induced fervor with hungry traders taking profits or selling in FOMO as a completely imaginary FUD took control of the stock.

The reality, is that Amazon is growing at an incomprehensible rate and expanding their reach into new sectors, new markets, and new worlds (virtual). Back in September, major investing banks were saying that any price under $2200 is too low. I still stand by that. Amazon is trading at more than 30% below value right now.

There are only three reasons Amazon could have fallen 1) irrational bot/trader interaction 2) information we don’t have access to 3) a self fulfilling recession is on its way.

What do you think?

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