Amazon stock price was slightly down at 123.95 on Tuesday Pre-Market trading at 09:13 AM EDT.
Last Friday, Amazon (NASDAQ:AMZN) lost more than 2% after FedEx (FDX) issued a warning that shipping volume has been falling on a weekly basis since June, jolting the transportation and e-commerce sectors. Raj Subramaniam, CEO of FedEx, added to the concerns when he predicted that the world economy would enter a recession.
Bank of America pointed out that FedEx’s (FDX) commentary revealed the shocking news that sales at its two biggest clients, Target and Walmart, were lower than anticipated. The company views this as yet another warning sign for Amazon. BofA is optimistic, meanwhile, that Buy-rated Amazon (AMZN) will experience market share growth and will be more resilient overall than its peers to some of the macro constraints.
The AMAZON breakdown from analyst Justin Post is as follows: “1) Amazon no longer ships with Fedex; 2) Amazon has well over 50% of volumes in the US; 3) Amazon likely has a higher-income average consumer than the Big-3 competitors (Walmart, Target, EBAY), and saw no discernible trade-down away from discretionary items in Q2; and 4) With Amazon’s wide third party selection and fast delivery speeds, we expect some share gains from competitors that may be using Fedex.” Due to Prime Day, BofA anticipates increased Q3 strength for Amazon vs. the sector.
Amazon stock price forecast
In the pre-market on Monday, Amazon (AMZN) shares decreased 1.08% to $122.34 from a 52-week trading range of $101.26 to $188.11. In the early session, FedEx (FDX) lost 1.07% after suffering a historical 21% loss on Friday.
Buy Amazon Now! Don’t Count On It Turning Around
In related news
As reported on Business Insider, Shopee, a Singapore-based e-commerce platform and one of Southeast Asia’s alternatives to Amazon, is cutting workers and closing several of its Latin American operations due to growing losses.
On September 19, department-wide town hall meetings where employees were informed of job losses to the HR, regional operations, marketing and product, and engineering teams were held, the local Singapore publication Business Times said, citing unnamed sources. The number of jobs that might be impacted could not be immediately confirmed by Insider.
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Author Jowi Kwasu 
