Tech stocks were the standout in trading
today, with the Nasdaq Composite up 1.6% on the
day, a small step toward recovering from April's 13.3% selloff.
But shares of Amazon
were in negative territory the entire day, save for the last few minutes of
trading, when they rebounded to finish up 0.2%. That's not the inspiring
buy-the-dip move some might have expected for Amazon after it fell 14% on
Friday following its disappointing second-quarter outlook.
So why was Amazon left out of the enthusiasm
today? You can most likely blame founder Jeff Bezos, who offered a rather
frank assessment of tech valuations over the weekend. The current Amazon
chairman and former CEO tweeted:
"Most people dramatically underestimate the remarkableness of this bull
run. Such things are unstoppable … until they aren’t. Markets teach. The
lessons can be painful."
You don't have to read too far between the
lines to wonder if Bezos is referring to his own company's stock. Last week was
indeed painful for the e-commerce giant. And the tweet didn't exactly suggest
the pain was over.
My colleague Tae
Kim saw Bezos' candor as a refreshing change:
In a world where most fund managers and company
executives mainly “talk their book,” or speak only positively of companies they
own, it’s refreshing to hear Bezos talk openly and honestly. The internet
entrepreneur is willing to tell it like it is about technology valuation
risk—even if it means his large holdings in Amazon may suffer.
You can read the rest of Tae's story here.
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