Giles Coghlan LLB, Lth, MA
Financial Source
Amazon earnings are due out this week for Q4 2022 and expectations are for an EPS of 0.17 and revenue of $145.77 billion. Since the start of the year, Amazon has been preparing for a coming global turndown by cutting 18,000 jobs which was an increase of the 10,000 reported at the end of last year. This is the largest round of job cuts in Amazon’s history and the majority are due to come from their core retail and HR departments. Bloomberg reports that shareholders are concerned about the amount of money Amazon is losing in its core retail business. Does this mean that Amazon has some more downside ahead? Will earnings surprise to the downside?
If earrings do surprise lower, and the stock falls, is this a good time to buy into Amazon for the long haul? Is this a dip worth buying?
The seasonals over the last 25 years show that it is an option worth considering. The stock has gained 19 times over the last 25 years with an average return of 12.28%. The largest gain was an unusual rise in 2007 of 65% and the largest drop was around the dot.com bubble burst in 2000 with a large -28.80% loss.
Major trade risks: The major risk here is that Amazon earnings show deep concerns about Amazon’s business which results in more prolonged falls. Also, a wider global slowdown could also hinder Amazon’s medium-term prospects.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Recommended content
Editors’ Picks
AUD/USD hung out to dry on familiar low end
AUD/USD tried and failed to spark a bull run during the first trading session of 2025, rising on thin volumes before collapsing back into the 0.6200 handle in the later hours of the day. A broad-market push into the safe haven Greenback kept the Aussie pair on the defensive, and the AUD is mired in congestion on the weak side of two-year lows.
USD/JPY flirts with multi-month highs in the 158.00 region
The USD/JPY pair traded as high as 157.84 on Thursday, nearing the December multi-month high of 158.07. Additional gains are on the docket amid prevalent risk aversion.
Gold retains the $2,650 level as Asian traders reach their desks
Gold gathered recovery momentum and hit a two-week-high at $2,660 in the American session on Thursday. The precious metal benefits from the sour market mood and looks poised to extend its advance ahead of the weekly close.
These 5 altcoins are rallying ahead of $16 billion FTX creditor payout
FTX begins creditor payouts on January 3, in agreement with BitGo and Kraken, per an official announcement. Bonk, Fantom, Jupiter, Raydium and Solana are rallying on Thursday, before FTX repayment begins.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.