Why Alibaba, Amazon Stocks Tumbled on Wednesday

With that as a backdrop, shares of $Alibaba (BABA.US)$ slipped as much as 5%, $Amazon (AMZN.US)$ stock was down as much as 3.1%.

Consumer spending is the bedrock of the economy and if people decide to rein in spending, it will no doubt be reflected in lower e-commerce purchases, pressuring the results of both Alibaba and Amazon. Furthermore, it's well documented that companies tend to slash marketing spend when the economy goes south, as it's an area that's easy to speed up or slow down.

It's important to point out that ebbs and flows are part of the natural cycle of the economy, so this has all been seen before. Furthermore, each of these companies has survived previous downturns, making it all the more likely they'll do so again.

But, in other wise, each of these stocks is cheaper than they've been in years.

Amazon, and Alibaba stocks are currently selling at two times forward sales, when a reasonable price-to-sales ratio is between one and two.

So here's a question. You guys think:

If you have any other views, please leave a message in the comments.