Amazon Reports Earnings On Tuesday. Here’s What To Expect

Amazon.com is scheduled to report earnings after Tuesday’s close. The stock hit a record high of $3,552.25/share in September 2020 and is currently trading near $3,300/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

Amazon.com is expected to report a gain of $7.07/share on $120.36 billion in revenue. Meanwhile, the so-called Whisper number is $10.45/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

Fundamentally, the stock is doing great as both sales and earnings have grown nicely over the past two quarters and the company benefited from the stay-at-home Covid-19 world we still live in.

A Closer Look At The Technicals:

Technically, the stock is acting very well as it is building a new base to consolidate the very strong rally we saw from March 2020-September 2020. The action is very healthy and a move above $3,552.25 would trigger a fresh buy signal.

MORE FOR YOU

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Comments are closed.