Tech giant Amazon.com Inc (NASDAQ: AMZN) delivered one of its better headline beats in last week’s earnings report, yet the stock has shed 10% in just two sessions. The swift drop follows a stunning 45% rally from April’s low, a run that left little room for anything short of perfection.
With the broader market refusing to be dragged down by Amazon, a rare and notable divergence, those of us on the sidelines need to ask ourselves some important questions. For example, is this simply a much-needed bout of profit-taking, or could it be the start of a much deeper shake-out? And depending on how you feel about it, is now the time to panic or the time to be brave?
