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Analysis: Why Amazon’s Stock is Declining

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 3/31/2025, 9:18 am ET 6 min read
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In this article

  • AMZN+3.45%
    AMZN - NYSEAmazon.com Inc.
    $173.10+5.78 (+3.45%)
    Volume:  52.83M
    Float:  9.45B
    $167.87Day Low/High$176.78

Amidst the surge of negative sentiment surrounding plans to invest $1 billion to mitigate Alexa-related privacy issues, and pivot efforts to combat economic headwinds, Amazon.com Inc.’s stocks have been trading down by -2.21 percent on Monday.

  • Amid a downturn in the tech sector, Amazon, Meta Platforms, Microsoft, and Google’s parent firm, Alphabet, all experienced significant declines. This saw Amazon’s stock dip noticeably.
  • MGM Studio’s head, Jen Salke, announced her departure to start a new production company, leading to a fall in Amazon shares by over 4%.
  • Warehouses belonging to Amazon and Flipkart in New Delhi faced raids due to quality control issues. Around 3,500 products valued at approximately 7 million Indian rupees were seized, impacting Amazon’s market perception in the region.
  • Amazon lost its appeal against an $812M privacy violation fine imposed in Luxembourg, further adding pressure to its stock.
  • In a controversial move, Amazon filed a lawsuit against the U.S. Consumer Product Safety Commission accusing the agency of overreaching its legal authority regarding third-party product recalls.

Candlestick Chart

Live Update At 09:18:07 EST: On Monday, March 31, 2025 Amazon.com Inc. stock [NASDAQ: AMZN] is trending down by -2.21%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Performance: A Quick Look

As a trader, understanding the importance of managing risks and knowing when to cut your losses is crucial. In the volatile world of trading, it is often emphasized that “It’s better to go home at zero than to go home in the red.” As millionaire penny stock trader and teacher Tim Sykes, says, it’s essential to avoid letting a bad decision compound into significant losses. Keeping this mindset helps many traders maintain discipline and sustainability in their trading strategies, ensuring they don’t let their emotions override their rational decision-making process.

Amazon’s latest earnings show a mixed bag. On the revenue front, Amazon reported a staggering $637.95B, which illustrates the sheer scale of its business. Yet, the company’s profit margins reveal some challenges; with a gross margin of 26.9% and a profit margin that hovers around 9.29%, there are areas Amazon must maneuver carefully. The stock’s current price-to-earnings ratio (P/E) stands at 34.88, indicative of how investors are trying to navigate these turbulent times.

In recent days, the stock price has moved erratically. The highest closing occurred at $199.26 on Mar 28, and the lowest, a $189.38 close, occurred just days earlier. Despite witnessing such fluctuations, there’s a noticeable downward pattern. This turbulence affects not just day traders but long-term investors looking for valuation steadiness.

Financially, Amazon holds a decent total debt-to-equity ratio of 0.18, which reflects its sound debt management. With a quick ratio of 0.9, it remains just shy of comfortably covering its immediate liabilities. In a story that many seasoned investors learn early on, liquidity is often a powerful vindicator of resilience.

Implications of Recent News on Amazon Stock

Deeper implications underpin these headline news stories. They serve as triggers for wider reactionary market behavior:

Tech Selloff Reflects Rising Skepticism:
Much like a ripple effect in the ocean, the tech sector faces monumental headwinds — a narrative now all too familiar as investors reassess their faith in giants like Amazon. When market confidence wanes, seasoned players know the effect can be felt across similar and even unrelated industries.

Leadership Changes and Strategic Risks:
Jen Salke’s exit introduces uncertainties. To an outsider, a single departure may seem minor, but at a corporate governance level, it sparks concerns over possible strategic shifts. Decisions by studio executives like Salke influence creative direction, which consequently might impact future profitability.

International Repercussions and Regulatory Setbacks:
The raids in New Delhi symbolize more than immediate financial loss; they underscore Amazon’s stringent operational challenges outside its primary market. Riding through the complex weave of international regulations can stymie even the most ambitious of expansions.

Simultaneously, having to grapple with an $812 million fine sends resounding echoes. Legal battles burn cash, time, and resources — elements otherwise aligned toward innovation and expansion. As far as stockholder sentiments go, very few things irk investors more than engraved legal spats.

More Breaking News

Prospects and Investor Perspectives

The mix of burgeoning challenges and financial intricacies has left Amazon on the precipice. Financial journalists write with caution but underline optimism from a thorough analysis. As retail shifts online, e-commerce growth plateaus slowly yet promisingly. Achieving balance between operational agility and strategic firm footing will dictate Amazon’s further trajectory.

Thus, the outlook evokes lessons from every compelling narrative. Traders may see buying opportunities, while cautious hedge fund managers recount the crucial ‘waiting game’ tales of stock interceptions. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” Regardless, Amazon stands resilient, taking strategic strides amid looming challenges.

Intrigue lies within the realm of probability — will Amazon recalibrate its compass, swiftly besting legal snares and leveraging digital demand? The forthcoming quarters will certainly tell.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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In this article (YTD Performance)

  • AMZN-22.19%
    AMZN - NYSEAmazon.com Inc.
    $173.10+5.78 (+3.45%)
    Volume:  52.83M
    Float:  9.45B
    $167.87Day Low/High$176.78

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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