- Amazon announced strong earnings after the close on Thursday.
- AMZN stock surged as a huge beat on EPS announced.
- AMZN shares are currently up over 12% in Friday's premarket.
Amazon (AMZN) is riding to the equity market rescue this morning after Facebook parent Meta Platforms (FB) left investors teetering over the edge on Wednesday. Amazon announced a big beat on EPS and a small miss on revenue. Investors cheered the news and set Amazon shares surging higher in the aftermarket on Thursday night. This has renewed bullish sentiment. Currently, US futures are also up with the NASDAQ pointing to a 1% higher open for the tech index. We had identified in our preview that the pessimism from Facebook had tilted the risk-reward to the upside for Amazon earnings and so it proved.
Amazon Stock News
Earnings per share (EPS) beat big, coming in at $5.80 versus estimates for $3.67. Revenue though did miss slightly, coming in at $137.41 billion versus $137.6 billion. In our preview note yesterday, we pointed out the strong cloud revenue numbers from IBM and Microsoft. Amazon's cloud unit, Amazon Web Services, duly delivered a strong performance with sales of $17.78 billion, an increase of over $1.5 billion from the last quarter.
The initial EPS number was a huge $27.75, which included the massive gain from the Rivian IPO. The performance of Amazon Web Services bodes well for future earnings as this is the highest contributor to earnings. Yes, the regular business drives most of the revenue, but AWS is the most profitable. Amazon also announced an Amazon Prime price increase. The company did allude to rising costs as have most companies this earnings cycle.
Amazon Stock Forecast
The 200-day moving average is the first target in sight at $3,371. Once above there, record highs are likely. First, Amazon needs to stabilize above the $3,170 double bottom. The Moving Average Convergence Divergence (MACD) has crossed into a bullish area, and the Relative Strength Index (RSI) is finally showing signs of life by getting above 50. Support is at $2,670.
AMZN chart, 20 hourly
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD corrects toward 0.6850, awaits US PCE Price Index
AUD/USD is falling back toward 0.6850 in Friday's Asian trading, reversing from near 19-month peak. A tepid US Dollar bounce drags the pair lower but the downside appears called by the latest Chinese stimulus measures, which boost risk sentiment ahead of US PCE data.
USD/JPY pares gains below 145.50 after Tokyo CPI inflation data
USD/JPY is paring back gains to trade below 145.50 in the Asian session on Friday, as Tokyo CPI inflation data keep hopes of BoJ rate hikes alive. However, intensifying risk flows on China's policy optimism support the pair's renewed upside. The focus shifts to the US PCE inflation data.
Gold price consolidates below record high as traders await US PCE Price Index
Gold price climbed to a fresh all-time peak on Thursday amid dovish Fed expectations. The USD languished near the YTD low and shrugged off Thursday’s upbeat US data. The upbeat market mood caps the XAU/USD ahead of the key US PCE Price Index.
Avalanche rallies following launch of incentive program for developers
Avalanche announced the launch of Retro9000 on Thursday as part of its larger Avalanche9000 upgrade. Retro9000 is a program designed to support developers with up to $40 million in grants for building on the Avalanche testnet.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.