Revenues expected at $104.65 billion
Amazon earnings will be released after the close. The following are the estimates:
- EPS $9.62. That is 92% year on year gain
- Revenues $104.65 billion. That is a 38.6% YoY
- The company had guided revenues at 100 billion to 106 billion
- The last two years has Amazon beating EPS and revenue estimates 75% of the time
- AWS is expected at $13.21 billion
- online stores expected at $5.2 billion
- subscription services at $7.4 billion
- physical stores expected $4.3 billion
The revenue guidance is expected at $108.6 billion for Q2. The your near revenue guidance is expected of $474.76 billion for 2021.
The market started to anticipate that Amazon would look to split their stock. The story is that with the stock price near $3500, it limits the amount of buying that could be done. There is also speculation that demand would increase if Amazon were to become one of the Dow 30 stocks. Since the Dow 30 is a price -weighted index, it is thought that higher price stocks are typically not chosen as one of the 30 stocks (it's weight would be disproportional to others). Moreover, there has been positive price action after Apple and Tesla split their stocks.
Since July of last year the stock has been trading up and down between $2871 and $3552 (see chart below). The price today reached a high of $3514.45. The price over the last week has moved up from $3300 on April 21. Looking at the chart, the stock will either break to the upside and potentially start a new trend move higher or technically, the swing area between $3492 to $3552.25 will have stall the rally for the third time (see chart below).
Of interest from a technical perspective is that the 50 bar the 100 bar and the 200 bar moving averages are all within $16 of each other. That is indicative of a non-trending market in the short, medium and longer-term. Everyone knows non-trend transitions to trending. Time will tell.
The other large-cap stocks have had mixed results post earnings. Microsoft, Apple, Facebook, Alphabet or beat earnings expectations. Microsoft price action was to the downside (down -3.5%). Apple price action today was initially higher (up over 4% in after-hours trading) but is now up only 0.55%. Facebook and Alphabet have seen strong gains (Facebook is up 7.2% today after reporting last night, Alphabet is up 4.5% since reporting after the close on Tuesday.
