Slow Chinese economy
In the previous part of this series, we discussed how Amazon (AMZN) was able to beat all analyst estimates with respect to its 2Q15 earnings. The earnings beat helped Amazon’s stock gain by 20% on the day earnings were announced. However, Amazon’s shares had a steep fall of about 10% in the week ending August 21, owing to the sell-off in the Technology sector. This meant that Amazon’s stock shed almost all the gains that it made after the 2Q15 earnings announcement.
The sell-off was due to various issues that include a consistent decline in the oil prices and the slowdown in the economies of emerging markets (EEM) of Brazil, Malaysia, and—most importantly—China.