| October 29, 2014 | Archives | Unsubscribe | | | | | |
 | | | | Amazon Is A Big, Fat "Sell" - Here's Why... | | | - Amazon stunned by "drone attack"
- A busted smartphone
- Plus: Here comes the Fed!
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| | | Greg Guenthner coming to you from Baltimore, MD...
 | | Greg Guenthner | I'm calling it now-- it's time to sell Amazon.
Here's the dirt: Amazon managed to lose a stunning $437 million during the third quarter. Holy disappointing -earnings-report, Batman!
Let's face it - lately, Amazon has been all sizzle - and no steak.
Same-day drone delivery? Wake me up when you hear one buzzing above your house. Its new smartphone? A busted flush. More on that in a second...
If you own shares of the tech giant, it's time to bail before an attack drone takes out its stock.
And the largest contributor to their loss was the Fire Phone I just referenced, which burned a $170 million hole in Amazon's pocket.
You remember the Fire Phone, right? Probably not. That's because no one-- and I mean no one-- bought it. It was supposed to compete with Samsung's stable of gigantic smartphones and Apple's iPhone mega-hit. But the Fire Phone crashed into flames when it debuted this summer.
Somewhere in China... or maybe here in the good ole U.S. of A... there's a warehouse stuffed to the gills with $83 million worth of unsold Amazon Fire Phones. They can't give the damn things away.
At one point, Amazon even slashed the price of its Fire Phone from $199 to 99. No, no, not 99 dollars - 99 cents. That's a 20,000% discount! And now, this $83 million albatross around Jeff Bezos's neck is dragging down everyone's favorite online marketplace.
Take a gander at this chart. If you haven't dumped your Amazon stock-- even after reading my pearls of wisdom-- you'd better hope Amazon doesn't launch any new "initiatives" anytime soon.
It's not just the Fire Phone pulling Amazon down. Face it-- the company has other serious issues. Amazon over-hyped its ambitious drone delivery technology on 60 Minutes last year. Its delivery drones remain a fantasy - who knows when they'll ever deliver you a single package. This, after Amazon bought drone maker Kiva Systems for $775 million in 2012.
Add up these missteps and you've got some gnarly earnings reports. Amazon's third-quarter loss was a real eye-opener-- a $437 million haircut. And let's just say Amazon brass isn't expecting shining fourth quarter numbers, either. They tipped off analysts last week that revenue would likely "disappoint" (That's corporate-speak for "Hold onto your hats!").
After peaking at $408 back on January 22nd, Amazon shares are down more than 25% on the year. Right now, one share of Amazon stock fetches less than 300 bucks - $295.59, to be exact. If investors continue to slap Amazon around, it could quickly drop to $260 before the bargain hunters show up. That's another 10% haircut. Meanwhile, the S&P 500 is now up nearly 7% on the year.
Bottom line: Amazon's a dog right now. Don't get caught stuck with this bowser heading into 2015. Because it could get even uglier... | | | | | | | | | One nurse reports quarantines at one major airport are "a frenzy of disorganization." Will you count on the government to protect you, or take charge of your family's safety instead? Click here to learn about the Ultimate Pandemic Survival Guide. | | | | | | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | 187 | points were added to the Dow Jones Industrial Average Tuesday. Stocks continue to find higher ground this week... | | $82.44 | buys a barrel of crude today. Oil is finally showing signs of life. It's up more than $1 in early trading... | | $799 | is the price of palladium this morning. The forgotten precious metal is trying to find its footing after enduring a nasty crash back in September... | | $1,221 | is where you'll find gold futures today. The shiny yellow metal is down almost $8 this morning... | | 1,978 | marks the spot for S&P futures just before the morning bell. Stocks are looking to open just slightly in the red to begin today's session... | | | | | | | | Rude Trends | When to Buy... When to Sell
| | | All anyone wants to talk about today is the Fed.
Ugh. Just stop it already...
Yes, the Federal Open Market Committee is meeting this afternoon. And this event is so serious that financial journalists are writing about it as if the meeting was a trailer for a summer blockbuster. Check out this doozy:
In a world of high debt and slow economic growth, the Fed's statement will be closely watched for any new clues that may foreshadow a policy change.
Sounds exciting! Or maybe not.
Frankly, I couldn't care less about the Fed meeting. We probably won't hear anything new or groundbreaking. Instead, it'll be another chance for journalists and economists to overreact to every single word and phrase in the statement.
Sure, stocks might get a little loose later today. But unless we hear something truly different from the Fedsters, it'll be business as usual for the stock market...
[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | | | | | | Ignore At Your Own Peril | Today's Must Read Links
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