Amazon, eBay Skid on Worries Over Retail Sales
The broad market is getting clobbered this morning in part by the extremely weak Commerce Department report on December retail sales–and investors are demonstrating particular zeal for dumping both Amazon.com (AMZN) and eBay (EBAY).
Commerce reported a 2.7 percent drop in retail sales in December, the sixth consecutive monthly decline. The report showed a 1.9 percent decline in sales at catalog and Internet retailers.
Pacific Crest analyst Steve Weinstein this morning said that Q4 e-commerce sales appear worse than expected. He estimates that sales were up one percent in October, then down more than three percent in November and more than four percent in December. He estimates total online sales in the quarter were down four percent, falling short of his previous forecast for flat growth.