Amazon: What Seems Expensive Today Can Look Cheap Tomorrow (NASDAQ:AMZN)
1. AMZN stock has declined over 21% from its peak. 2. The Fear and Greed Index stands at 21, reflecting extreme fear.
FAQ
Why Bearish?
A 21% decline from all-time highs signals weakened investor confidence, affecting AMZN's growth potential. Historically, periods of low demand, as indicated by such Fear and Greed Index levels, correlate with declining stock prices.
How important is it?
The drastic decline signals a negative investor sentiment towards AMZN, which can influence trading strategies and future pricing. Given the current index level, this sentiment carries significant weight in market predictions.
Why Short Term?
The current market sentiment suggests immediate selling pressure on AMZN could persist. This could lead to further stock price declines in the short term, similar to past downturns during high panic levels.