Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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Some people hate it when I do this, but I tell them we’re short AMZN because it’s a Software Company with tough comps. Amazon Web Services (AWS) #slowed -260 basis points (revenues) last quarter and Aggregate Software Comps only get tougher in Q4. No that doesn’t imply the same revenue slow-down Cisco (CSCO) just guided to for their coming quarter. But it’s still not what any AMZN bull was thinking when both the stock and the Sector Styles (Software and Consumer Discretionary) peaked in July of 2019. Yes, I am synthesizing what are “unrelated” components (to the rabbit hole analyst) to conclude why I’d stay short both of these “stocks.” They, alongside many factors like Copper, Global Yields, etc. help form an updated truth about China/USA in #Quad3. |
