On a day (and during a week) of Nasdaq outperformance, AMZN has remained under pressure. That relative weakness caught my eye earlier this week, once again today. AMZN is down 0.3% today, while the Nasdaq is up about 0.6% as I type. On the week, AMZN is down about 3%, while the Nasdaq is unchanged.
AMZN has shown relative underperformance ever since it made a new all-time high on July 26th, after its earnings report on the afternoon of the 25th. The stock has been under pressure ever since, though it is still comfortably above its breakout level of around $285 (red line), and its rising 50 day moving average around $288:
After this week’s selloff, AMZN is only up 18% year-to-date. So it’s underperforming both the S&P 500 and the Nasdaq in 2013, quite a surprise given the perception that AMZN is a leader of this year’s bull run (particularly since internet stocks have been on a tear recently).
AMZN has been on my banned trading list for some time now since the fundamental story is beyond me. But for those who still have a vested interest, I find its recent weakness notable in light of the market’s strength.