Amazon’s (AMZN) upcoming earnings report for its fiscal fourth quarter is set to be released on Thursday after the bell, with many wondering if the e-commerce giant can continue its strong performance amid pressure from capital expenditures (CapEx) across the tech sector.
Michele Schneider, chief strategist at MarketGauge.com, joins Morning Brief to note that while Amazon remains a reliable and affordable option for consumers, concerns over CapEx spending could lead to market volatility, as CapEx “always hits the bottom line in terms of profits.” Ultimately, she believes a major economic downturn would need to occur for Amazon to falter.
“The guidelines for the future [are] still good, but yet also the capital expenditures [are] rising. And that’s why we’re seeing some volatility in those stocks,” Schneider explains.
Additionally, Schneider highlights small caps and retail as sectors showing potential, believing these areas are already in the market’s current momentum.
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This post was written by Josh Lynch