What To Expect From Amazon’s Earnings Today

Amazon
AMZN
Inc. is scheduled to report earnings after Thursday’s close. The stock hit a record high near $188/share in 2021 and is currently trading near $129/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

The company is expected to report a gain of $0.34/share on $131.42 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.40/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals

Amazon’s earnings are expected to grow nicely in 2023 and 2024. The company lost -0.27 cents in 2022 and is expected to earn $1.64 in 2023 and $2.80 in 2024. If that happens, earnings will grow by over 70% in 2024 compared to 2023! That can easily justify higher share prices.

A Closer Look At The Technicals

Technically, the stock tanked nearly 60% during the 2022 bear market but has since recovered nicely. The stock bottomed in January 2023 near $81.43/share and rallied sharply since then. The bulls want to see the stock rally after earnings and the bears want to see it fall and hit new lows.

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.

Disclaimer: The stock has been featured in my FindLeadingStocks.com report.