The Amazon (AMZN) share has fallen almost dramatically. At the beginning of September, investors wondered where the tech company should actually stop. Is Cyber Monday 2018 sending the much-anticipated buy signal?
Since the record high of $2,050 at the beginning of September, the stock is clearly in a downtrend. At that time, the group had exceeded the market value of one trillion dollars for the first time. Thus, Amazon seems officially in a bear market, which is by definition assuming a price loss of 20 percent from the 52-week high. Amazon currently trades around $1,500.
From a technical point of view, it is also significant that the stock has recently fallen below both the 200-day and the 38-day lines. Technically-minded analysts consider slumping below the moving averages as a sell-signal.
The fresh quarterly figures of October 25 have not stopped the downward trend, even though the technology company has managed to report record figures. Investors were given the cautious outlook for the current fourth quarter, which is the most important one of the year due to the Christmas business.
Will Cyber Monday turn things around?
Maybe Cyber Monday will change investor sentiment. The day after the Thanksgiving holiday, “Black Friday”, was the busiest day of the year in the US. Then comes the Cyber Monday, when the online trade shows an active day with numerous discount offers. Last year, Amazon broke its single-day sales record. Sales forecasts for this year are also high as analysts were expecting Americans to spend $7.7 billion on Cyber Monday.
But is it even the fundamental data that puts Amazon in pain? Because it’s the entire elite of US tech companies that are now plummeting after climbing on Wall Street for years. All FANG stocks and many other technology companies are currently in a bear market.