Amazon.com Inc (NASDAQ:AMZN)
After the close of Thursday, Amazon.com ($AMZN) released Q3 earnings that smashed estimates and sent shares soaring in the post market.
The online retailer posted earnings per share of 52 cents on $43.7 billion in revenues. This is compared to analyst estimates of just $41.6 billion in revenues.
This is a nice surprise for investors, especially in a third quarter release because this is a quarter where Amazon usually spends a lot of money getting ready for the holidays.
Technical Analysis
As you can see in the 5-minute chart above, shares of $AMZN absolutely skyrockted after earnings dropped with current prices sitting at an almost 9% increase from Thursday’s close.
Expect shares to be very volatile Friday with heavy volume and large range. If you are looking to trade it you’ll want to look at $1083.31 as the first major resistance level. After that we will be in unchartered territory and will have to look at whole and half dollar levels for potential resistance.
Support will be first found at the premarket pivot of $1,050 and $1,040. After that we will need to watch the 20-EMA at $1,035.99 followed up by $1,011.47.
It may be a good idea to let prices stabilize after the open in order to find a good entry and make sure to place hard stops as this will be moving fast!
Amazon.com CEO Comments
“In the last month alone, we’ve launched five new Alexa-enabled devices, introduced Alexa in India, announced integration with BMW, surpassed 25,000 skills, integrated Alexa with Sonos speakers, taught Alexa to distinguish between two voices, and more. Because Alexa’s brain is in the AWS cloud, her new abilities are available to all Echo customers, not just those who buy a new device,” said Jeff Bezos, Amazon founder and CEO. “And it’s working — customers have purchased tens of millions of Alexa-enabled devices, given Echo devices over 100,000 5-star reviews, and active customers are up more than 5x since the same time last year. With thousands of developers and hardware makers building new Alexa skills and devices, the Alexa experience will continue to get even better.”
AMZN Profile
Amazon.com, Inc. engages in the provision of online retail shopping services. It operates through the following segments: North America, International, and Amazon Web Services (AWS).
The North America segment includes retail sales of consumer products and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca. The International segment offers retail sales of consumer products and subscriptions through internationally-focused websites.
The Amazon Web Services segment involves in the global sales of compute, storage, database, and AWS service offerings for start-ups, enterprises, government agencies, and academic institutions. The company was founded by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle, WA.