Amazon.com Inc (NASDAQ:AMZN) shares are trading lower by 2.1% to $148.69 Tuesday morning. Stocks across sectors are falling potentially due to rising Treasury yields, profit-taking following marked strength in 2023 as well as uncertainties in upcoming economic reports and Federal Reserve speeches.
Investors are waiting for confirmation regarding expected rate cuts, closely watching the December meeting minutes from the Federal Reserve and jobs data.
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Why Rising Yields Matter
Growth stocks like Amazon often rely on future cash flows for their valuations. When interest rates rise, the discount rate used in discounted cash flow models increases.
A higher discount rate can lower the present value of future cash flows, affecting the perceived value of these growth stocks. Investors might adjust their expectations for future earnings, leading to a decline in stock prices.
According to data from Benzinga Pro, AMZN has a 52-week high of $155.63 and a 52-week low of $81.43.
