Last week, trading sessions were hard not for Chinese companies only: Amazon, Pinterest, and Nikola shares dropped as well, Why did this happen, and what will the future be like? Find out below.

A slow-down in sales dragged Amazon shares down by 8%

On July 29th, Amazon issued its quarterly report, and for the first time in the last three years it was inferior to Wall Street forecasts in terms of revenue. In Q2, 2021, the tempo of its growth turned out to be significantly lower than in ay of previous quarters – 44% vs 27%.

In April-June, revenue reached $113.08 billion, while analysts (according to Refinitiv) expected a result of $115.2 billion. The corporation explains this by the recuperation of the global economy, alleviation of quarantines, and mass vaccination. In other words, people got tired of online shopping, craving for offline leisure.

Amazon management forecasts that this year, the growth will keep speeding down. They expect that in July-September, the revenue will reach $106-112 billion. Simultaneously, this result is 10-16% better than in the same period last year but 6.5-12.5% worse that the consensus evaluation,

On July 30th, after such a report, the stock price of Amazon (NASDAQ: AMZN) dropped by 7.6% to $3327.59.

Important report details

  • Revenue - $113.1 billion, +27%, forecast - $115.2 billion;
  • Return on stock - $15.4, +47%, forecast - $12.3;
  • Net profit - $7.8 billion, +48.6%.

Tech analysis of Amazon shares by Maksim Artyomov

“On the chart, we can see a price gap. The quotations have fallen under the lower border of the ascending channel. I suppose that the price will go on descending towards the support level. The aim o the decline is the 200-days Moving Average.

In the future, the quotations might test the support level and bounce off it, continuing the uptrend. The aim of the decline is $3,100. The aim of growth, meanwhile, might be the nearest high”.

Tech analysis of Amazon shares for 02.08.2021

Pinterest shares slumped by 18% because its US audience shrunk

On the same day with Amazon, a popular US social medium and photo-hosting Pinterest reported its performance in Q2, 2021. The company had managed to increase its quarterly revenue significantly and even become profitable. However, this did not save its shares from falling.

On July 30th, the stock price of Pinterest (NYSE: PINS) dropped by 18.24% to $58.9 because the monthly number of active users in the USA had shrunk noticeably – by 5% to 91 million people. However, the number of users in other countries grew by 13% to 363 million users.

Important report details

  • Revenue - $613.2 million, +125%, forecast - $562.1 million;
  • Return on stock - $0.1, +159%;
  • Net profit - $69.4 million, +169%.

Tech analysis of Pinterest shares by Maksim Artyomov

“Pinterest shares closed the previous trading session with a gap, closing under the lower border of the channel. At the current stage, I suppose that the decline will continue. The aim of the trend is the support level of $55.

The decline is supported by the 200-days MA because the price rests under it. Judging by the general context, I would say that the downtrend will turn into an uptrend after the price tests the support level and bounces off it”.

Tech analysis of Pinterest shares for 02.08.2021

Nikola shares are falling while the founder is accused of fraud

On July 28th, we got to know that the prosecutor of Manhattan accused Trevor Milton, the founder of Nikola car-making company, of disseminating deliberately false information in order to obtain benefits. In other words, prosecutors state that he got investors misled, pushing them to buy more stocks.

The stock price of Nikola (NASDAQ: NKLA) started going down swiftly. On July 29th, it dropped by 15.22% to $12.03 during the trading session.

Tech analysis of Nikola shares by Maksim Artyomov

“Nikola shares keep falling. Now they can reach the support level of $9.5. As long as the price rests under the 200-days MA, I think that the downtrend will continue. If we hear some good news, The quotations might bounce off the support level upon testing it and grow to $16”.

Tech analysis of Nikola shares for 02.08.2021

Summing up

At the end of last week, the following companies demonstrated a decline in the stock price: Amazon – by 7.6%, Pinterest – 18.24%, and Nikola – by 15.22%. The first two stocks declined after the publication of quarterly reports that were worse than Waal-Street analysts had expected. The latter was let down by its owner, accused of fraud.

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He is the guru of searching for and demonstrating hidden opportunities and insights of the market. He writes about everything that might be of interest to the investor: stocks, currencies, indices, and various business spheres. Has been “in” since 2019.