If Amazon (NASDAQ: AMZN) shares were ever going to take even the slightest drop, the last possible moment it would be expected to happen would be the day before Thanksgiving. Yet that is exactly what happened.
Amazon closed yesterday afternoon down .66% at $780.12, and it’s hard to imagine why. This is the beginning of the biggest shopping season of the year, almost certainly the giant e-tailer’s most profitable quarter. If anything, you would expect shares to be hitting peaks, then maybe falling if the next earnings report reveals that sales didn’t meet expectations.
But seeing the stock drop on this particular day is nothing short of bizarre. There are only a couple of possibilities being tossed around, and neither of them seem to carry much weight.
One of Amazon’s hubs for shipping merchandise is located in Wilmington, Ohio. Air Transport Services Group is used by both DHL and Amazon, and it has a subsidiary named ABX Air. Its pilots for ABX who went on strike.
The loss of those flights would probably have been relatively insignificant anyway, but not completely unnoticeable. In any case, a Cincinnati judge required the pilots to temporarily put their strike on hold for five days so as not to inconvenience the multitude of customers ordering from Amazon on Black Friday.
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Okay, Walmart is definitely starting to make some seriously promising e-commerce moves. But those moves, including getting help and advice from Jet.com – which should be no surprise since Walmart paid $3 billion for the e-commerce startup, are still in their infancy.
Maybe by next year Walmart will be in a position to legitimately challenge Amazon in the e-commerce marketplace, for the first time in…forever. But it’s way too soon for new initiatives to play a significant role. At this point, Walmart is still nipping at Amazon’s heels.
And maybe investors finally figured that out, because the Amazon shares did start to come back just a bit in after-hours trading. But, really, yesterday probably offered a little bit of a buying opportunity.