1 Stay-at-Home Stock That Got Slammed After Reporting Earnings

  1 Stay-at-Home Stock That Got Slammed After Reporting Earnings Amazon,  Saw Their Stock Prices Decline Following Earnings Announcements.   A trend emerging as the earnings season continues is reporting that stay-at-home stocks have dwindled customer engagement as economies worldwide reopen. An example of this is Amazon AMZN (NASDAQ) $3.303,50 +11,39 (+%0,35) It reported sequential declines from the previous quarter, guiding investors to expect continued challenges. Unsurprisingly, the stock was battered after earnings announcements. Let's take a closer look together.

-Amazon

Amazon announced its second-quarter results on July 29. The company increased its net sales by 27% compared to the previous quarter, showing a slowdown compared to the year-over-year increase in the previous quarter. So Amazon disappointed investors even more, despite guiding them to expect revenue growth of 10% to 16% next quarter. In fact, Amazon benefited tremendously at the start of the pandemic and delighted its subscribers, as millions of consumers turned to the e-commerce retailer to meet their needs during their stay at home. But the Company is now reversing that trend.

Amazon,  Saw Their Stock Prices Decline Following Earnings Announcements.

Despite all these setbacks, the company still accelerated revenue growth in the more profitable Amazon Web Services segment. That wasn't enough to entice investors, and the stock fell 7.5% after the report.

Focus on the long term

It would be unrealistic to expect the surge that sent millions of people to this company due to economic lock downs to last forever. That doesn't mean Amazon can't reap lasting benefits from the pandemic. It should not be forgotten that during the crisis it gained millions of new customers. Undoubtedly, some of these customers will continue in the long run, even if some of them return to their old habits as economies reopen. On the other hand, the pandemic has accelerated the world's transition to digital. In the long run, more will be shopped online and more content will be streamed digitally. Investors should keep this in mind when evaluating quarterly reports.  

Source: The Motley Fool

 

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