Are cracks (finally) appearing in high-flying FAANG stocks like Amazon (AMZN)?

While the tech giant reported a great quarter on an absolute basis, it guided revenue below Street estimates for the first time in six quarters.

This is yet another sign corroborating our outlook for a broader slowdown in the U.S. economy heading into the back half of 2018. The growth rate in U.S. economic data like Retail Sales, ISM, Durable Goods, Industrial Production is already peaking.

In other words, the economic backdrop won’t support consumer-based Tech stocks like Amazon as we progress further into 2018.

As Hedgeye CEO Keith McCullough explains in the clip above, Amazon is going from a revenue growth story with no earnings to the exact opposite.

“Today is a very different day in terms of the prospective outlook for Amazon,” McCullough explains.“That’s why they had some difficulty explaining the guidance. The Street looks fine with it because it wasn’t the blowup Facebook (FB) was. But that doesn’t mean three to six months from now people won’t say ‘wow, I’m buying a stock that’s cheaper, but I’m not buying a stock that has accelerating revenue trends.’ We’re at a very important juncture where macro won’t support revenue accelerating like it did for the last eight quarters.”

Watch the clip above for more insight (including commentary from Hedgeye Retail analyst Jeremy McLean).