Amazon stock was trading at $115.51 at 01:58 PM EDT.
In order to account for increased macroeconomic uncertainty and the effects of a strong U.S. currency on profitability, Bank of America lowered its projections for Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY).
The acceleration on simpler comparables has fallen short of the company’s projections for more rapid growth, even though BofA’s credit and debit card data showed U.S. online spending increased 20bps to +3.5% year-over-year in August.
According to BofA’s resetting of e-commerce, “a number of recent indicators point to a weakening outlook for discretionary consumer spending, including 1) higher than anticipated peak interest rates from the Fed; 2) a negative fiscal 1Q pre-announcement from FedEx; 3) a sharp decline in CarMax sales due to “affordability challenges” for consumers, and 4) the first MoM decline in the Case Shiller home price index since January 2019.
eBay, Amazon Stock Outlook
Even with currency hedges in place, the new macro backdrop is expected to put pressure on overseas revenue for both of the world’s largest e-commerce companies, according to the firm, which reiterated a Buy recommendation for Amazon stock (NASDAQ:AMZN) and a Neutral rating for eBay ((NASDAQ:EBAY). The price objective for Amazon stock (NASDAQ:AMZN) was lowered from $170 to $157 on a more pessimistic outlook for the fourth quarter and the first half of 2023, while the price objective for eBay ((NASDAQ:EBAY) was reduced from $54 to $44.
BofA’s price objective reductions on the two e-commerce stocks were influenced by lower valuations across the board in the IT sector. Analyze the metrics for Amazon and eBay’s valuations.
Show: The Rings of Power
The Rings of Power, which had two episodes available for streaming in its first week, is among the most expensive series ever made. Amazon agreed to pay $1B for the TV rights over five seasons, and reports suggest that the first season cost $465 million (though this figure included a significant upfront investment in infrastructure such as sets that would be used for the duration of the series run).
Game of Thrones (NASDAQ:WBD) was the fourth-most streamed program, with 792 million minutes, while its prequel, House of the Dragon (WBD), was at No. 5, with 781 million minutes. This streaming outpaces the prestige-series fantasy competition on HBO Max. However, in both of those instances, it’s crucial to keep in mind that those minutes only take into account HBO Max streaming and do not take into account viewing on HBO linear channels.
Featured Image- Megapixl @ Mjilapong
Author Jowi Kwasu 
