- 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
Gold climbs to new all-time high above $3,400
Gold extends its uptrend and trades at a new all-time high above $3,400 on Monday. Concerns over US-China trade war escalation and the Fed’s independence smash the US Dollar to three-year troughs, fuelling XAU/USD's rally.
EUR/USD clings to strong gains above 1.1500 on persistent USD weakness
EUR/USD gains more than 1% on the day and trades at its highest level since November 2021 above 1.1500. The relentless US Dollar selling helps the pair push higher as fears over a US economic recession and the Federal Reserve’s autonomy grow.
GBP/USD tests 1.3400 as USD selloff continues
GBP/USD continues its winning streak, testing 1.3400 on Monday. The extended US Dollar weakness, amid US-Sino trade war-led recession fears and heightened threat to the Fed's independence, underpin the pair following the long weekend.
How to make sense of crypto recovery – Is it a buy or fakeout
Bitcoin (BTC), Ethereum (ETH) and XRP, the top three cryptocurrencies by market capitalization, extend their last week’s recovery on Monday, even as trader sentiment is hurt by the US President Donald Trump’s tariff policy and announcements.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.