Amazon Inc. share price finds support ahead of Q2 earnings
Key Takeaways
- Amazon will report its Q2 2024 earnings on Thursday, August 1, 2024.
- A Bloomberg consensus estimates Amazon's earnings per share (EPS) at $1.01 and revenue at $148.54 billion.
- Amazon's own guidance forecasts net sales between $144.0 billion and $149.0 billion
- Based on inputs from 44 Wall Street analysts, the 12-month price targets for Amazon range from $200.00 to $250.00, with an average target of $224.60
- The long-term trend for Amazon remains upward, despite a recent correction from all-time highs.
When does Amazon release its Q2 2024 results?
Amazon, the Nasdaq listed, world leading online consumer retail business will report its second quarter earnings for 2024 (Q2 2024) on Thursday the 1st of August 2024.
Amazon results: Q2 2024 earnings preview, what to expect?
A Bloomberg consensus of analyst forecasts suggest Amazon to announce earnings per share (EPS) of $1.01 and $148.54 billion in revenue.
Second quarter 2024 guidance released by Amazon is as follows:
- Net sales are expected to be between $144.0 billion and $149.0 billion, or to grow between 7% and 11% compared with second quarter 2023. This guidance anticipates an unfavorable impact of approximately 60 basis points from foreign exchange rates. In first quarter 2024 the impact from Leap Year added approximately 120 basis points to the year-over-year net sales growth rate.
- Operating income is expected to be between $10.0 billion and $14.0 billion, compared with $7.7 billion in second quarter 2023.
- This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.
How to trade the Amazon results
Based on 44 Wall Street analysts offering 12 month price targets for Amazon in the last 3 months. The average price target is US$224.60 with a high forecast of US$250.00 and a low forecast of US$200.00. The average price target represents a 24.21% change from the last price of US$180.82.
Ninety-three percent of IG clients with open positions on Amazon (as of the 26th of August 2024) expect the share price to rise in the near term, while six percent of IG clients with open positions on the company expect the price to fall.
Amazon: Technical Analysis
The long term trend for Amazon Inc remains up. In the short term we have seen a correction from all-time highs, bringing the price back to support and into oversold territory.
Traders respecting the long term trend would prefer to keep a long bias to trades on the stock. A bullish price reversal off the 180.60 support level if confirmed would suggest a move back towards recent highs at 200.75. In this scenario a close below the 173.45 level might be used as a stop loss indication.