Amazon (AMZN, $3,327.59) beats Q2 earnings estimates; misses revenue expectations
Amazon reported its first revenue miss in three years, despite an earnings beat for the quarter.
The e-commerce behemoth’s adjusted earnings for the second quarter came in at $15.12, exceeding analysts’ expectations of $12.30 per share.
Revenue grew +27% from the year-ago quarter to $113.08 billion; but it fell short of analysts’ estimate of $115.2 billion . Amazon CFO Brian Olsavsky cited tough year-over-year comparisons --in mid-May of last year, Amazon’s growth rates surged to between 35% to 45%, he said.
Looking ahead, Amazon expects sales to range between $106 billion and $112 billion for the third quarter, implying year-over-year growth of 10% to 16%. That’s well below analysts’ projection of $119.2 billion.
The company is predicting third quarter operating profit in the range of $2.5 billion and $6 billion.
AMZN in downward trend: price expected to drop as it breaks its higher Bollinger Band on May 10, 2023
AMZN broke above its upper Bollinger Band on May 10, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 47 similar instances where the stock broke above the upper band. In of the 47 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on May 19, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where AMZN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 09, 2023. You may want to consider a long position or call options on AMZN as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AMZN just turned positive on May 10, 2023. Looking at past instances where AMZN's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 345 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 251 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.634) is normal, around the industry mean (5.471). AMZN's P/E Ratio (270.270) is considerably higher than the industry average of (64.701). Projected Growth (PEG Ratio) (4.084) is also within normal values, averaging (2.600). Dividend Yield (0.000) settles around the average of (0.038) among similar stocks. P/S Ratio (2.242) is also within normal values, averaging (8.429).
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