After making its blockbuster $1 trillion mark company, the e-commerce giant Amazon has been witnessing price correction on stock exchanges. On Monday, the share price of Amazon finished at $1,520.91 down by $71 or 4.46%. Amazon shares have been dropping in past few weeks along with its other FAANG stocks like Apple, Netflix, Google and Facebook. This has made investors lose their faith in technology stocks. It needs to be noted that, Amazon shares were just trading near $1,913-level in the beginning of October month, and has now crumbled below to $1,500. With such performance, one needs to ask themselves a question on whether Amazon shares are attractive for investment. 

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According to Seekingaplha.com report, every time Amazon (AMZN) drops, there will be the skeptics who just claim it’s a bubble popping. A cursory glance at a stock chart and their tiny GAAP EPS doesn’t do much to argue to the contrary. Long term AMZN investors however likely instead remain razor-focused on the long term vision which, in spite of the market volatility, remains as strong as ever. AMZN is a buy.

For the fourth quarter, Amazon gave guidance  at $66.5 billion to $72.5 billion, or 10-20% growth.

Reportedly, this suggests a massive growth slowdown, which would be a natural end to the party for bubbles. 

(Image Source: MarketWatch.com)

The Amazon shares tumble is also reflected in its founder Jeff Bezos' wealth. According to Bloomberg Billionaires Index, Bezos has lost about $5.62B as on December 17, 2018. He still holds the richest man on earth title with wealth of $126 billion.

Explaining about the bubble, the report adds that, thEir price performance following their earnings announcement certainly makes it look like one. AMZN has a business segment which is “currently not very profitable” and another which is “currently already very profitable.” Before one rushes out to short this retail behemoth, it’s important to look at these segments with the right perspective.

Thereby taking into consideration the views, one can invest in Amazon when its price is correcting.