Summary of Earnings Bombs: Amazon Stock Crashes!

00:00:00 - 00:45:00

The video discusses the recent stock market decline, and how Amazon's stock price has plummeted as a result. The author discusses how this could be due to a variety of reasons, including Amazon's recent investment in foreign companies, and how it is a competitive company.

• 00:00:00 The video discusses the recent stock market falls, and how these drops may be signs of a larger economic decline. The author also points out that the recent positive GDP reading is not indicative of an economy that is out of the woods, and that there are still many uncertainties in the market.
• 00:05:00 The video discusses how the unemployment rate is a lagging indicator and how you usually see a rise in unemployment when the economy is already in a recession. It also points out that the positive Q3 GDP reading is well the president of course said that for months doomsayers have been arguing that the US economy is in a recession, but now that we have technical factors pushing GDP positive, they're not talking about technical factors anymore. The internals and the numbers don't lie, and real GDP was released today showing growth rebounded. Peter Schiff, a financial analyst, tweeted that even with today's 2.6 rise in Q3 GDP, US GDP has no growth in 2022.
• 00:10:00 A company known as Amazon stock crashed, losing a quarter of its value in a single day. The Geniuses say this is a good sign that the economy is about to fall off a cliff. This should be terrifying to any market observer. The report for Amazon's net sales year over year showed that expenses went up more than revenues, leading to a slowdown in the rate of growth of the company's operating margin. This is not a good place for Amazon to be in the midst of a recession. Apple, another top five company, is doing better than Amazon, but the growth rate of their net sales and operating margin is slowing down.
• 00:15:00 Today's stock market closed with divergences across the major indexes, with the Dow Industrial Average outperforming the NASDAQ. This divergence may be due to different expectations for the economy - with the DOW seeing a positive trend, while the NASDAQ is falling. According to David Costa, this is a trend that should be watched closely, as it indicates that corporate America is burning through cash flow at an alarming rate.
• 00:20:00 Today's markets saw a broad range of reactions, with Amazon stock falling sharply, but most other stocks declining as well. Natural gas was down by 5%, but other commodities remained mostly unchanged. The options market saw a number of trades involving bets on a decline in stocks.
• 00:25:00 The video discusses the recent stock market decline, and how various companies have reported earnings. Some of the companies that have performed well are Apple, Microsoft, and Amazon, while others, such as McDonald's and Honeywell, have been less successful. The video then discusses Nvidia, which has seen a stock increase despite the rest of the tech sector declining. The narrator concludes that the reason for this is that Mark Zuckerberg, the CEO of Facebook, is "an flk ACD guy," meaning that he is "a securities trader who is not afraid to lose money." He goes on to say that this could eventually lead to Facebook's downfall.
• 00:30:00 The video discusses the stock crashes of Amazon, PayPal, and Tesla, and how these events could lead to financial ruin for those who are short these stocks. The author also warns readers about the potential for more stock crashes in the near future.
• 00:35:00 The video discusses Amazon's stock crashing, and how signs suggest that the Bears are gaining the advantage. The 1-year chart of Amazon shows a strong bearish trend, with the stock dropping to new lows and attempting to close the gap, but reversing and closing at the lows of the day. The 5-minute chart also shows a bearish trend, with the stock consolidating and attempting to crack above 89, but failing. The video concludes by saying that, until a breakout out of the consolidation range is seen, it is too risky to go all in shorting the market.
• 00:40:00 The video discusses how Amazon's stock has crashed and is currently in a consolidation range. It also discusses the potential for future crashes in other major markets.
• 00:45:00 The video discusses how Amazon's stock price has plummeted in the past few months, and how it could be due to a variety of reasons. Some of the reasons include Amazon's recent investment in foreign companies, and concerns about its competitive nature.