Amazon’s Earnings Just Hit a Record. So Why Is the Stock Down 11% From Its Peak?

Amazon’s Earnings Just Hit a Record. So Why Is the Stock Down 11% From Its Peak?

The technology bull market is beginning to stagger just a bit. Amazon (NASDAQ: AMZN) stock fell again after it reported earnings last week, and while it has rebounded modestly, as of midday Monday, it is still down 11% from its peak.

Earnings came in at record levels, yet investors remain nervous about the technology giant in e-commerce and cloud computing. Understanding why could help inform your decision about whether or not you should buy Amazon shares right now.

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Robust cloud demand but a dent in cash flow

In the third quarter, Amazon’s cloud division, Amazon Web Services (AWS), was the star of the show yet again. Revenue was up 39% to $46 billion, one of its…

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