What To Expect From Amazon.com’s Results

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Amazon is scheduled to report earnings after Thursday’s close. The stock hit a record high of $188.11/share in 2021 and is currently trading near $158. 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 $0.81/share on $166.04 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.88/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals

Amazon.com has not steadily grown its earnings over the last few years but the stock has had a big move. In 2019, the company earned $1.15, in 2020 the company earned $2.09, in 2021 earnings grew to $3.24, in 2022 the company lost -($0.27)/share, and the company is expected to earn $2.72/share in 2023. More impressively, going forward, earnings are expected to grow by 41% in 2024 to $3.83/share. That is very impressive for a company this large!

A Closer Look At The Technicals

Technically, The stock had a massive run from 2008-2021 and has been struggling since. The stock fell hard in 2022 and is doing its best to recover since the big decline. The 2021 high was $188.11 and the 2022 low was $81.43. That’s a big decline. Since then, the stock has jumped nicely and is currently trading near $158 a head of earnings. The bulls want to see the stock gap up after earnings and the bears want to see it gap down.

Company Profile

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. It operates through three segments: North America, International, and Amazon Web Services (AWS). The company’s products offered through its stores include merchandise and content purchased for resale; and products offered by third-party sellers. It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, Blink, eero, and Echo; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as fulfillment, advertising, and digital content subscriptions. Additionally, the company offers Amazon Prime, a membership program. It serves consumers, sellers, developers, enterprises, content creators, and advertisers. The company was incorporated in 1994 and is headquartered in Seattle, Washington.

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.