Amazon reports earnings today, with investors focusing on AI, cloud, advertising, and the macro impact.The Fed meeting tomorrow adds a layer of post-earnings market volatility for the stock.) reports its first-quarter earnings today after the market closes. Investors will be keenly focused on several key aspects of the report:Advertising Segment Growth:How global economic conditions are affecting Amazon's financial health and operations.
Analysts forecast an annualized EPS growth rate of 43.7% for both this year and next year, reaching $4.17 and $5.31 per share, respectively. Beyond AI, Amazon's competitive pricing, diverse product range, and swift delivery are expected to continue driving sales growth. Additionally, the company's burgeoning advertising business holds significant potential, particularly with the Prime Video platform.
The calculated fair value for AMZN is $177.50, suggesting the stock is currently trading around its fair value level. However, it's crucial to monitor potential changes in fair value following the earnings report.High Profitability Expectations for This Year:While not a critical concern, Amazon's debt level remains at an average level, which could become a risk factor in certain economic conditions.
If Amazon's earnings report is positive, a further surge towards the $190 band is likely. Additionally, the Stochastic RSI and CCI indicators on the daily chart hint at potential bullishness.