Amazon Gaps Down on Earnings: Further Declines Likely

Jan.31.08 | About: Amazon.com, Inc. (AMZN)

Amazon (NASDAQ:AMZN) is currently trading down more than $6 after reporting inline earnings after the close Wednesday. The stock initially traded up $4, but investors quickly showed that the bears were in charge and sent shares on a nose dive.

We pulled up AMZN's historical reports from the Bespoke Earnings Report Database to see how it typically trades on the following day (today) when it gaps down on earnings. As shown below, the stock has averaged a further decline of -0.66% from the open to close when opening lower after a weak quarterly report.

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