After months of steady pressure that intensified in recent weeks, Amazon.com Inc (NASDAQ: AMZN) is back to where it was at the start of last March. Not only are shares down more than 12% this year alone, but they’re down more than 20% from November’s all-time high, effectively wiping out the gains of the past 12 months.
For a company with so much going for it fundamentally, the stock simply cannot seem to catch a break. Sure, investors have been rotating out of mega-cap tech; there are increasing concerns about Amazon’s capital expenditure plans, and sentiment across the sector has cooled materially. But beneath the surface, the current setup is beginning to look extreme. Here are two reasons to believe the market has gone overboard.
