Nasdaq Sniffles and Amazon Gets Pneumonia

NEW YORK (TheStreet) -- During the last month, the Nasdaq has caught a cold. Before Wednesday's turnaround, it was down about 5%.

Amazon (AMZN), meanwhile, has caught pneumonia. Its shares are down over 10% during that time, and have fallen 17% for the year.

The stock was recently trading at $330.14, down 1.7%.

Amazon has become a proxy for the Nasdaq's troubles, because it is managed for growth instead of for profits and growth slows as a natural consequence of numbers getting bigger.

My own trading view, however, is often wrong. In January, I wrote that you should buy shares of Amazon, and everyone sold. The stock is down about 8% since my call.

The company, which reports earnings on April 24, is in great shape. Analysts are expecting first-quarter revenue of $19.4 billion, 21% higher than last year. They also expect a profit. Should Amazon fail to meet those estimates, expect another leg down in the stock price.

In the first quarter, Amazon raised the price of its Prime service from $79 a year to $99 and introduced a set-top box called Fire TV that also plays video games. This month, it announced Dash, a scanner that lets you build a shopping list by just pointing to products in the house.

Dash works with Amazon Fresh, a service in major West Coast markets that offers grocery shopping, including fresh fruits and vegetables, for $299 a year, a price that also buys you Prime. Amazon is expected to expand the service to other major markets.

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