Amazon (AMZN) stock jumped after its latest earnings release beat analysts’ expectations for profit.
AMZN – Daily Chart
AMZN closed the day at $109.82, and the initial surge of 8% has faded to a slight loss. However, if buyers return, traders can play further gains to the 114 and 120 levels.
The company reported Q1 revenue of $127.4 billion, up 9% from last year, boosted by an 11% gain in North American sales. Net income was $3.2 billion, or 31 cents per share, compared to analysts’ expectations of $2.38 billion and $0.22. The company reported a $7.8 billion loss on its stake in EV company Rivian.
“There’s a lot to like about how our teams are delivering for customers, particularly amidst an uncertain economy,” CEO Andy Jassy said. “Our Advertising business continues to deliver robust growth, largely due to our ongoing machine learning investments that help customers see relevant information when they engage with us, which in turn delivers unusually strong results for brands.”
Amazon (AMZN) Stock Forecast
The company’s AWS cloud business saw its sales rise 16% year-over-year to $21.4 billion while operating income declined 21% to $5.1 billion. Analysts expected earnings to suffer with slower cloud performance. The company is now pivoting more toward artificial intelligence, following other big tech firms looking at AI as the future driver of their bottom line.
Traders should look to the market reaction to Amazon’s earnings on Friday and follow additional strength to the resistance levels noted.
