Home
News
- 1 Amazon stock price slumped nearly 7.06% in the last two intraday sessions.
- 2 Amazon.com, Inc. reported quarterly results on Thursday, 26th August.
- 3 Amazon stock price slipped lower to break below the 200-day EMA ahead of quarterly results.
Amazon stock price slumped over 7.06% in the past two sessions ahead of the quarterly results. The company reported quarterly results on 26th August. However, the AMZN stock price started losing from Wednesday itself.
The Amazon stock price showed a gap-down opening of 1.91% on Wednesday and was expected to maintain above the 200-day EMA. However, the stock price showed a continuous drawdown and slipped below the 200-day EMA, thus, losing a total of 5.5% by the end of the session.
The price movements from yesterday’s session were choppy due to the earnings call. The Amazon stock price continued with a pre-market gap down opening of 0.68%. Thereafter, the stock experienced a seesaw movement and closed 1.50% down.
Amazon.com is a multinational tech giant engaged in the provision of online markets and shopping services. Besides these, Amazon offers various products and services like Amazon Web Services and Amazon Prime Video. Amazon Prime Video is an OTT platform designed for the entertainment of users.
The tech giant (Amazon) holds a market cap of over $1.227 Trillion. It generates revenues through various subsidiaries. The largest contributor to Amazon’s revenue is the online store which generates $220.4 Billion which is about 42.8% of the total revenues collected by Amazon.
Amazon Web Services contributes $80.09 Billion, about 15.58% of the total revenues generated. Amazon has other sources of income like advertising services that contribute over 8% and subscription services that add up to over 7% of the revenues.
Amazon Quarterly Earning Analysis
Amazon.com on Thursday announced third quarterly results with a revenue of $143.1 Billion up 13% as compared to last year’s same quarter. The revenues surprised the estimates by over $1.08 Billion.
Moreover, the earnings showed a big leap against the estimates and the last quarterly earnings. Amazon reported a profit of $9.9 Billion, improving from a $2.9 Billion profit in the last year. The company witnessed a jump of over 60% in profits. The EPS improved to 94 cents per share as compared to 28 cents per share.
Amazon’s CEO Andy Jassy mentioned yesterday in his speech during the earnings session that generative AI, which can create writing or images from data, is a huge opportunity for AWS. He said the technology could bring “tens of billions” in revenue for AWS in the next few years. Amazon is partnering with AI startup Anthropic which will use AWS technology and offer its tools to cloud customers.
Amazon is investing up to $4 Billion in Anthropic, a startup with which Amazon has partnered during the current quarter. Moreover, Amazon is trying to catch up with Microsoft and Google in generative AI applications, which are growing “very, very quickly”.
Amazon Stock Price Fell Despite Delivering A Good Quarter
The price action analysis of Amazon over the daily timeframe elaborates a breakdown of a short-term consolidation near the 200-day EMA. The company delivered surprising quarterly results with earnings better than 60% from the previous quarter. However, the stock price declined despite delivering a good quarter.
The daily chart shows that the stock price maintained the previous buying trend at the start of the current quarter and continued to rise till it reached a high of $145. Thereafter, the price slipped below the 50-day EMA, turning the short-term outlook negative.
The price hovered between the 50-day and 200-day EMA for about a month and turned bearish ahead of the results.
Amazon Stock Surges 6% In Pre-Market Session
The last trading session saw a bearish outlook despite the company reporting a promising quarter. However, the price might recover from the decline as the pre-market sessions are showing a gap-up opening of nearly 6%.
Moreover, the price needs to sustain the gap-up to turn bullish and resume an uptrend. The gap-up opening has recovered over 80% of the decline in the last two sessions but the continuation requires intraday buying to become sustainable.
The price has entered the consolidation zone again. Moreover, the most important hurdle on the upside is the upper zone of consolidation i.e. the $134 level. The breakout above may turn the price trend positive and the price may show gains in the coming sessions.
Amazon Stock Price Fell Below 200-Day EMA
The price recently broke below the 200-day EMA indicating a bearish outlook. However, the pre-market session today shows a gap-up opening of nearly 6% that may surge the price above the 200-day EMA again.
However, the AMZN price remains below the 50-day EMA indicating the continuation of the short-term correction phase. The breakout above the 50-day EMA may turn the stock price bullish and the stock price may show gains thereafter.
Conclusion
Amazon, a global tech giant, reported strong quarterly results with revenues and profits exceeding expectations. In the mid of the last quarter, the company also announced its partnership with Anthropic, an AI startup that will use AWS technology and offer generative AI tools to cloud customers.
However, Amazon’s stock price slumped over 7% in the past two sessions before the earnings announcement. The price showed a gap-down opening on Wednesday and fell below the 200-day EMA.
The price might recover from the decline as the pre-market sessions are showing a gap-up opening of nearly 6%. The price needs to break above $134 and the 50-day EMA level to resume an uptrend.
Technical Levels
- Support levels: $123.94 and $113.63
- Resistance levels: $133.38 and $144.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
