Stock Watch: Layoffs Drag Down

On Friday, (Nasdaq: AMZN) confirmed that it laid off about 150 employees, or about two percent of its workforce. While analysts did not seem concerned about the news, shares of tumbled nearly eight percent on Friday, falling 5-1/14 to 61-11/16. Granted, this development came on a day when all three of the major stock indices bled, with the Nasdaq tumbling 3.8 percent.

While the layoffs themselves might not be a cause for anxiety among many investors, what should have investors a bit worried is the recent stock meltdown of many business-to-consumer companies. The most notable of this category is eToys, which closed Friday at an all-time low of 16-1/16. Clearly, investors are becoming increasingly impatient with companies that report growing losses., of course, is known for doing exactly that.

Many observers thought that the holiday season would validate the biggest online retailers, but even though sales were sharply up, the shine seems to be off many of the stars. could be a volatile stock this week. The company reports earnings on Wednesday.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

How often do you receive an email that you suspect is fraudulent?
Loading ... Loading ...

LinuxInsider Channels