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How to Trade Amazon's Stock (AMZN) Ahead of Earnings
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On Thursday, July 28th, Amazon.com Inc. (AMZN - Free Report) will released its second quarter earnings results. The company is currently a Zacks Rank #3 (Hold) and shares are up around 9% year-to-date.
David Bartosiak looked into Amazon’s past earnings, look at what is currently going on with the company, and gives us his thoughts on their upcoming earnings announcement.
Furthermore, Dave looked into some potential options trades for investors looking to make a play on Amazon ahead of earnings.
Amazon.com Inc. in Focus
Amazon.com Inc. engages in the retail sale of consumer products in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail websites. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo, as well as fire phones. In addition, the company offers programs that enable sellers to sell their products on its Websites, and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Further, it offers compute, storage, database, and other AWS services. Additionally, the company offers Amazon Prime, an annual membership program, which provides free shipping of various items, access to unlimited streaming of movies and TV episodes, and other services.
Amazon is coming off of an earnings beat of 75.41% last quarter, beating the Zacks EPS Consensus Estimate of $0.61 by posting EPS of $1.07.The company has had a solid recent history with earnings reports actually, as it has beat earnings in 3 of its last 4 quarters, posting an average earnings surprise of 133.55%.
Heading into this earnings report, our Most Accurate Estimate is EPS of $1.57, which is $0.43 higher than the Zacks Consensus Estimate of $1.14. This means that there is an earnings expected surprise prediction of 37.72%.
Though the company may experience some foreign currency headwinds, continued growth in the company’s AWS and Amazon Prime segments are likely to keep Amazon on the roll it has been on for some time. Amazon Prime continues to add members and offerings, while AWS should see continued growth as well, especially as the cloud continues to see growth in importance and use.
The Zacks Consensus Estimate has grown a great deal over the quarter leading up to the company’s earnings report thanks to analysts estimate revision activity. 2 analysts raised their quarter estimates in the last 60 days, and the Zacks Consensus Estimate has grown from $1.10 to $1.14 in that time.
Subscribe to our channel to be notified of future live streams and make sure to check out our other videos for more stock information.
Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
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How to Trade Amazon's Stock (AMZN) Ahead of Earnings
On Thursday, July 28th, Amazon.com Inc. (AMZN - Free Report) will released its second quarter earnings results. The company is currently a Zacks Rank #3 (Hold) and shares are up around 9% year-to-date.
David Bartosiak looked into Amazon’s past earnings, look at what is currently going on with the company, and gives us his thoughts on their upcoming earnings announcement.
Furthermore, Dave looked into some potential options trades for investors looking to make a play on Amazon ahead of earnings.
Amazon.com Inc. in Focus
Amazon.com Inc. engages in the retail sale of consumer products in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail websites. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo, as well as fire phones. In addition, the company offers programs that enable sellers to sell their products on its Websites, and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Further, it offers compute, storage, database, and other AWS services. Additionally, the company offers Amazon Prime, an annual membership program, which provides free shipping of various items, access to unlimited streaming of movies and TV episodes, and other services.
Amazon is coming off of an earnings beat of 75.41% last quarter, beating the Zacks EPS Consensus Estimate of $0.61 by posting EPS of $1.07.The company has had a solid recent history with earnings reports actually, as it has beat earnings in 3 of its last 4 quarters, posting an average earnings surprise of 133.55%.
AMAZON.COM INC Price, Consensus and EPS Surprise
AMAZON.COM INC Price, Consensus and EPS Surprise | AMAZON.COM INC Quote
Heading into this earnings report, our Most Accurate Estimate is EPS of $1.57, which is $0.43 higher than the Zacks Consensus Estimate of $1.14. This means that there is an earnings expected surprise prediction of 37.72%.
Though the company may experience some foreign currency headwinds, continued growth in the company’s AWS and Amazon Prime segments are likely to keep Amazon on the roll it has been on for some time. Amazon Prime continues to add members and offerings, while AWS should see continued growth as well, especially as the cloud continues to see growth in importance and use.
The Zacks Consensus Estimate has grown a great deal over the quarter leading up to the company’s earnings report thanks to analysts estimate revision activity. 2 analysts raised their quarter estimates in the last 60 days, and the Zacks Consensus Estimate has grown from $1.10 to $1.14 in that time.
Subscribe to our channel to be notified of future live streams and make sure to check out our other videos for more stock information.
Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.