- Summary:
- What is the outlook of the Amazon stock price ahead of the company’s earnings? We explain whether it is a good buy or not.
The Amazon stock price is hovering near its lowest level since March 8th as investors refocus on its upcoming quarterly results. The AMZN share price is trading at $2,763, which is sharply lower than its year-to-date high of $3,800, meaning that the stock is in a bear market. In addition, its total valuation has slipped to about $1.4 trillion, making it the fifth-biggest company in the world after Apple, Saudi Aramco, Microsoft, and Alphabet.
Amazon will publish its quarterly results on Thursday after the market closes. It will become one of the biggest big-tech companies to release its results. On Tuesday, Microsoft published strong results, which pushed its stock price up by more than 5% on Wednesday. And on Wednesday, Meta Platforms published good results, which helped push its share price up by over 18%. Alphabet had mixed results.
Analysts expect that Amazon will have mixed results. For one, like Microsoft. Its cloud business is expected to do well. But, on the other hand, the firm will likely report weak retail business because of the rising inflation. As a result, analysts expect that Amazon’s revenue will be $116 billion while its earnings per share will be $8.50. In the most recent quarter, which included the holiday period, Amazon had revenue of $137 billion and a profit of $27.75 per share.
In addition to the headline figures, there are three things that investors will focus on. First, there is the issue of pricing power, considering that prices have jumped sharply this year. Second, investors will look at the company’s ad business and its performance. Finally, there is the operating income figure. Analysts expect the company to report an operating income of about $5 billion.
Amazon stock price forecast
The daily chart shows that the Amazon share price has been in a deep sell-off in the past few weeks. The stock has sold off as investors focus on the company’s slowing business and rising inflation. In addition, it has moved below the 25-day moving averages while oscillators have continued falling. Therefore, with sentiment so weak, I suspect that the AMZN stock price will bounce back and retest the $3,000 resistance level after earnings.
