NEW YORK (TheStreet) - Amazon.com (AMZN) stock was on a momentum run-up from its May 9 low at $284.38 to its pre-earnings high at $364.85 on July 24. Investors immediately began to dump shares like a crashing drone after the closing bell on July 24 on a huge earnings miss.
The company missed analysts earnings per share estimates by 14 cents reporting a loss of 27 cents. This hurts when a stock has a 12-month trailing price to earnings ratio at 853.7 and does not pay a dividend.
Amazon appears to be over-expanding in constructing fulfillment centers. I live in Tampa Bay, Fla., and back in October the company announced that it would build two warehouses in the area. One warehouse is just off I -75 in Ruskin and will soon be delivering small consumer products from books to electronics. The second is being built in Lakeland and will focus on backing and shipping large items such as TVs.
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The good news is that Amazon began hiring employees for these fulfillment centers in May and as many as 1000 jobs will be created. The bad news is that Floridians shopping on-line through Amazon.com have been paying sales taxes since May 1. Time will tell whether or not sales will be hurt by taxes.
These fulfillment centers remain under construction and jobs are still available.
Let's take a look at Amazon's daily chart: