It's the nature of the business: You write something one minute, and the next minute the market turns and you look like an idiot. It wasn't always this way, but the Internet has changed a lot of things and the stock market is certainly one of them.
Though we were surprised to see the market bounce back after this morning's economic data, which even superbulls like
declared a victory for bears, we never put the feat out of the realm of possibility. After all, investors have been rewarded for buying on the dip for some time now, and there were truly bargains out there after the early setback.
But things have fallen apart since then. The bears have again found the momentum and driven prices lower. With the
meeting next week, there may be renewed concern that the data could mean a more aggressive Fed.
TheStreet.com Internet Sector
index was down 61.10, or 5.4%, at 1079.63 in recent action after trading as high as 1131.82 earlier in the session.
According to one trader, investors were "getting out first and asking questions later." The trader said institutional investors, who are more concerned about interest rates, were selling on today's numbers, while retail investors, who may not know the
, were following.
And, as we wrote before, many of the best-performing stocks of late were getting hammered today as traders attempt to book profits before others do so.
was down 15 13/16, or 9%, at 159;
was off 19 11/16, or 9%, at 209 1/2;
was down 16 7/8, or 12%, at 126; and
was off 14 5/8, or 5%, at 270 3/8.
, down 5 11/16, or 9%, at 61 1/4, suffered with the rest of the market, but it was difficult to tell if its losses stemmed from its announcement this morning that it would lay off 150 employees as part of a restructuring.
"My only comment is, at the end of Q3, they had more than 5,000 employees, so to lay off 150 is an extraordinarily small amount of people," said Scott Reamer, an Internet analyst with
. "I am completely unworried about it. It doesn't say anything to me about the health of the underlying business, or the manner in which the company is managing that business."
Reamer said that the seasonality of the e-commerce business was as great as it has ever been and that Amazon may be beginning to expand and contract its business according to its sales volume. He added that laying off 150 employees "won't matter one iota" to the company's profit and loss figures. Reamer maintains a strong buy rating on the stock, saying Amazon is "a misunderstood story." His firm has not done underwriting for the company.
also initiated coverage of Amazon today with a neutral rating. Analyst Sara Farley wrote that she felt Amazon was "fairly valued." Amazon is scheduled to report earnings next week.