Amazon is tanking after earnings – experts weigh in 

Amazon investors weren't impressed by its recent quarter.

A revenue miss and weak guidance for the holiday season had its shares tumbling nearly 8 percent on Friday.

Here's what some experts have to say about the e-commerce giant:

  • Mark May, Citi internet analyst, says Amazon should continue to deliver strong earnings growth in coming quarters. "We're annualizing now at almost $25 in GAAP earnings," said May. "We have a line of sight very conservatively to $50 a share in GAAP earnings in 2020, only two years away. I actually think the underlying dynamics of Amazon are quite strong."
  • Anthony DiClemente, senior media and internet analyst at Evercore ISI, says its revenue whiff has a more discerning and value-focused market punishing the stock. "Some of the accounting and the revenue presentation, it's just not as clean as it has been in the past and in a market like this, in a choppy, discriminating, demanding market like this, that's a recipe for some volatility," he said. "But we're keeping the buy. I think basically what you say is it's an opportunity to own or own more of great companies that you want to own for a long time when they go on sale and I do think Amazon is one of those companies."
  • Mark Mahaney, lead internet analyst at RBC Capital Markets, says the decline in Amazon's share price offers a buy-the-dip opportunity. "I think that Amazon remains a top-line 20 percent, 30 percent gross profit grower with expanding operating margins," said Mahaney. "We're just having a reversion in the stock price back to the median forward multiple. It's not a back-up-the-truck price here but we still think you'd wade in and buy the shares on this type of correction."
  • Colin Sebastian, senior research analyst at R.W. Baird, says revenue weakness in its recent quarter overshadows other positives. "The headline, topline number obscures an otherwise very strong report. If you look at Amazon on a volume basis growth remains well above 20 percent so I think that should give investors some sense of relief even though the stock is reacting this way today," he said.

Bottom line: A market rotation away from buzzy, high-growth stocks could hurt Amazon in the near-term, but the sell-offs could present an opportunity for the investor ready to buy and hold for the long term.

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's Closing Bell (M-F, 3PM-5PM ET). In addition, he contributes to CNBC and CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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