Amazon.com Inc. (NASDAQ:AMZN), will report its first quarter results on Tuesday. Wall Street expects EPS of 78 cents and revenue of $133.1 billion, as the company reports. after market hours.
Amazon stock was supported by the company’s strong positioning in AI, cloud computing and e-commerce. The stock has been on an upward trajectory, gaining 71.10% over the past year and showing a positive trend of 18.22% year-to-date.
Key Factors to Watch as Amazon Reports First Quarter Results
As Amazon prepares to report its first quarter results, investors are closely watching several key factors.
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The performance of Amazon Web Services (AWS) and its progress in AI development.
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Market share gains in digital advertising
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The impact of recent price increases on third-party sellers’ bottom lines
These will be significant indicators of Amazon’s growth potential.
One of the main goals of investors is profitability. Amazon’s efforts to improve margins and operational efficiency will be closely watched, especially as the company aims to become more efficient and profitable in 2024.
Also worth noting is Amazon’s strategic investments in robotic warehouse automation. With more than 750,000 robots deployed, Amazon aims to reduce fulfillment costs and increase efficiency. This automation drive has already yielded results, with fulfillment costs increasing less than overall revenue, indicating significant potential savings in the future.
Read also: Amazon’s Mega AWS Investment Marks Largest-Ever Capital Infusion in Indiana
Charts indicate bullish resurgence for Amazon shares
From a technical analysis perspective, Amazon stock is currently experiencing a bullish resurgence with slight buying pressure.
Amazon’s stock price is trading above its major short-term moving averages, reflecting positive market momentum. The 8-day simple moving average (SMA) stands at $177.84, signaling an uptrend. Additionally, the 20-day SMA at $181.55 and the 50-day SMA at $178.03 reinforce the uptrend.
The Moving Average Convergence Divergence (MACD) indicator is 0.05, suggesting a moderately bullish signal. The Relative Strength Index (RSI) is in the neutral zone at 54.37, far from oversold or overbought.
The Bollinger bands for Amazon stocks suggest an uptrend. The stock’s price line just moved from the lower band to the upper band ahead of Q1 results, reflecting the positive sentiments driving the stock.
Wall Street analysts see 17% rise
Amazon shares have shown strong performance and strategic positioning in key areas. Technical analysis shows a resurgence of bullish sentiments just before the company’s Q1 earnings announcement.
Both moving averages and oscillators indicate a positive short-term stock trajectory for Amazon stock. In addition, fundamental factors strengthen the long term…
