In May, Barron’s ran a negative cover story on Amazon.com headlined “Amazon.bomb.” Barron’s was at it again over the weekend.
This time the publication published a piece that noted that Amazon.com’s revenue per customer is declining even though the company has branched out into new categories such as auctions, electronics and toys.
Shares of Amazon.com tumbled 6-1/16 on Monday, and this time around, there might really a reason to be worried The Amazon.bomb story raised concerns about Amazon.com’s spending and uncertain road to profitability. Informed investors already knew about these problems. This more recent story raises an issue that few people knew about.
Don’t be surprised if Amazon.com continues to tumble.