Amazon Stock Drops

Amazon.com Inc. shares sank 6%, reversing earlier gains, after a report poured cold water on investor optimism that the online superstore could join forces with retail powerhouse Wal-Mart Stores Inc., analysts said. Amazon shares rose in early Nasdaq trading amid a rally in tech stocks, but ended the day off 75 cents at $11.88 after a report in the online edition of the Wall Street Journal said a tie-up between Amazon and Wal-Mart was not expected soon. Amazon and Wal-Mart declined to comment on the report. Amazon shares surged 28% on Monday after the Journal reported that Amazon Chief Executive Jeff Bezos had met with Wal-Mart Chief Executive Lee Scott to strike a deal for Amazon to handle Wal-Mart’s online strategy while gaining a foothold in the chain’s 4,500 stores.