Market traders are watching Amazon (AMZN) shares today. Bearish selling subsided on Monday, ending a nine-day losing streak on the stock. AMZN stock lost over $450 million in market capitalization during the rout.
Selling intensified starting on February 2. Investors reacted poorly to CEO Andy Jassy’s decision to cut around 16,000 jobs. That is in addition to the 14,000 job cuts last year. With the savings, the firm pivoted its funds to spend aggressively on artificial intelligence. It is expected to spend $200 billion in 2026 on everything AI.
Amazon’s high capital expenditures mirror those of Metal Platforms (META), Oracle (ORCL), Microsoft (MSFT), and Alphabet (GOOG).
In the auto sector, watch Genuine Parts (GPC). Shares lost 14.56% to close back at January’s share price of $125.74. Investors did not like the firm’s decision to split its automotive and industrial sectors into two entities.
In the fourth quarter, Genuine Parts posted a 4.1% increase in sales to $6 billion.
Acquisitions helped add to a 1.5% increase in sales. However, the firm took a $160 million non-recurring charge. Credit losses on volume purchase rebates, plus amounts due from a vendor that filed for bankruptcy, hurt results.
GPC is an attractive stock at these levels.
Leidos (LDOS) dropped by over 8%. In Q4, revenue fell by 4% Y/Y to $4.2 billion. Still, the firm is forecasting an ENBITDA margin in the mid 13% range.
