Shares of Amazon.com (Nasdaq: AMZN) continued to tumble on Thursday, two days after the company said that its record fourth-quarter sales of $650 million would not reduce its anticipated net losses. Amazon.com closed down for the third consecutive trading day on Thursday, tumbling 4-3/16 to 65-9/16, a fall of six percent. On Thursday, Deutsche Banc Alex. Brown downgraded Amazon.com from buy to market perform.
This rapid sell off is somewhat surprising. After all, Wall Street has to be used to Amazon.com’s rising losses by now, and even before Tuesday’s announcement was made, nobody expected Amazon.com to turn a profit any time soon. Even after this week’s decline, Amazon.com is worth a healthy $22 billion, and it remains the top e-commerce site in terms of revenue, registered users and traffic. Amazon.com is simply too big to disappear, like New York magazine columnist and failed Internet entrepreneur Michael Wolff predicts it will. Wolff has clearly been wrong before, and he is certainly wrong about this.