Amazon's Chart Offers Clues Before Tuesday's Q1 Earnings Reveal

Amazon.com, Inc. +1.60%

Amazon.com, Inc.

AMZN

189.08

+1.60%

Amazon.com Inc (NASDAQ:AMZN), will be reporting its first-quarter earnings on Tuesday. Wall Street expects 78 cents in EPS and $133.1 billion in revenues as the company reports after market hours.

Amazon stock has been buoyed 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% YTD.

Key Factors To Watch As Amazon Reports Q1 Earnings

As Amazon prepares to report its Q1 earnings, investors are keenly watching several key factors.

  • The performance of Amazon Web Services (AWS) and its progress in AI development.
  • Market-share gains in digital advertising
  • The impact of recent price increases on third-party sellers’ results

These will be significant indicators of Amazon’s growth potential.

One of the primary focuses for investors is profitability. Amazon’s efforts to improve margins and operational efficiency will be closely monitored, especially as the company aims to become more efficient and profitable in 2024.

Amazon’s strategic investments in robotic automation in warehouses are also worth noting. With over 750,000 robots deployed, Amazon is aiming to reduce fulfilment costs and increase efficiency. This automation drive has already shown results, with fulfilment costs growing less than overall revenue, indicating potential significant cost savings in the future.

Also Read: Amazon’s AWS Mega Investment Marks Indiana’s Biggest Capital Infusion Ever

Charts Indicates A Bullish Resurgence For Amazon Stock

From a technical analysis perspective, Amazon’s stock is currently experiencing a bullish resurgence with slight buying pressure.

Chart: Benzinga Pro

Amazon stock’s price is trading above its key short-term moving averages, reflecting positive market momentum. The 8-day simple moving average (SMA) stands at $177.84, signaling a bullish trend. Further, the 20-day SMA at $181.55, and the 50-day SMA at $178.03, reinforce the bullish trend.

Chart: Benzinga Pro

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, a long way off being either oversold or overbought.

The Bollinger Bands for Amazon stock are suggesting a bullish trend. The stock’s price line has just crossed over from the lower band to the upper band ahead of Q1 earnings, reflective of positive sentiments driving the stock.

Wall Street Analysts See 17% Upside

Amazon’s stock has shown strong performance and strategic positioning in key areas. The technical analysis shows a resurgence in bullish sentiments right ahead of the company’s Q1 earnings announcement.

Moving averages and oscillators both point towards a positive near-term stock trajectory for Amazon stock. Further, fundamental factors provide strength to the longer-term thesis.

Per Wall Street analyst consensus, Amazon stock is a Buy with an implied 17% upside per recent analyst reports.

The overall outlook for Amazon remains positive, especially with its continued focus on profitability and efficiency improvements.

Read Next: What’s In The Cards For Amazon In Q1? Analyst Sees Double-Digit Sales And Profit Growth

Photo: Shutterstock

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