Amazon Inc. (NASDAQ: AMZN)
After the market closed today Amazon Inc. (AMZN) reported earnings that missed analyst expectations and sent shares tumbling in the post market session. AMZN reported net income of $482 million or $1 per share while analyst were looking for $1.55 per share on $754 million in income, a big miss. Revenues also missed coming in at $35.7 billion while analyst were looking for $35.9 billion. As you can see from the chart, traders were not pleased with these results. However, there were some positive numbers in the release as AMZN had a 51% increase in Prime memberships and sales, even though they missed estimates, were still up over 20% compared to the same period last year. Currently analysts have an average price target of $755.95 but we could see some downgrades of the next couple days after this earnings report.
Shares of AMZN were crushed in the post market session and as of this writing were down just over 13% after closing the day at $635.35. Shares found support around the $550 level so we’ll have to wait and see how shares open the day. Look for support at the 200-day moving average at $532.32 and $547.18 while resistance will be met at the $580 and $$568.25 levels. Looking back on the daily chart you can see that AMZN has been performing very well as it has been in a strong trend dating back to January of last year when it was trading in the low $300s. Shares have recently pulled back from highs in the $680 range but got a nice bounce off the $560 support level and established lower lows at the $580 level. With this big sell off I would plan on watching price action at the key levels I mentioned before especially if it makes it down to the 200-day moving range. AMZN is still a solid company and I think this is a bit of an over reaction by the market. This may be a great opportunity to get shares at a discount so keep this one on your radar.
Amazon.com, Inc. provides online retail shopping services. It provides services to four primary customer sets: consumers, sellers, enterprises, and content creators. The company also provides other marketing and promotional services, such as online advertising and co-branded credit card agreements. It serves consumers through its retail websites with a focus on selection, price, and convenience. It designs its websites to enable its products to be sold by the company and by third parties across dozens of product categories. It also manufactures and sells the Kindle e-reader and strives to offer customers the lowest prices possible through low every day product pricing and free shipping offers, including through membership in Amazon Prime. The company offers programs that enable sellers to sell their products on its websites and their own branded websites, earning fixed fees, revenue share fees or per-unit activity fees from these transactions. It also serves developers and enterprises of all sizes through Amazon Web Services, which provides access to technology infrastructure that enables virtually any type of business. The company operates in two principal segments: North America and International. The North America segment consists of retail sales of consumer products and subscriptions through North America-focused websites such as www.amazon.comand www.amazon.ca. The International segment consists of retail sales of consumer products and subscriptions through internationally focused locations. This segment includes export sales from these internationally based locations, including export sales from these sites to customers in the U.S. and Canada. The company was founded by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle, WA. (MarketWatch)