Stock pricing on Amazon shares dropped significantly recently. The reason? Amazon announced that they would not be as profitable this year as they had hoped.
Annual operating profit will be $310 million to $440 million, the Seattle-based retailer said in a statement yesterday. In April, the company projected profit of as much as $520 million.
This has to be one of the silliest parts of the stock market. The markets reaction to Amazon’s announcement and announcements of similar nature by other companies basically amounts to a knee-jerk reaction. The company is not in a poor financial state. They are still estimating profits in the 300-400 Million range. Yep, I said Million.
On the other hand, now AMZN is at a 52 week low. Perhaps the time is right to buy up some stock in a profitable company that shows no signs of slipping very far.
Are there any stock guru’s out there that have a valid argument why I’m wrong?
[tags]stocks, amazon, profit, AMZN[/tags]
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