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Amazon’s share price jumped in late-Thursday trade after the coming released a much-stronger than expected first-quarter earnings results. Wall Street cheered as the company revealed it now has over 200 million Amazon Prime members.
The online giant reported earnings of 15.79 per share on revenue of $108.50 billion far outpacing expectations of $9.54 on revenue of $105.40 billion. It was announced that revenue has jumped by nearly 45 percent from the same period a year ago.
Amazon also predicted strong second-quarter growth, which further appeased Wall Street, and then laid forth ambitious business ideas for 2022, including the Amazon’s plan to expand into virtual health care across American.
Analysts remained extremely bullish towards Amazon, with Wall Street conducting a survey about the 12-month future price appreciation of Amazon’s stock price. The average consensus amongst Wall Street was for 18 percent of upside.
The company even beat Facebook and Alphabet in forecasting, as 96% of analysts giving a buy rating towards the e-commerce giant. Amazon has the highest P/E ratio amongst the top tech companies. The only concern for analyst is the Amazon’s razor think profit margin.
Low profit margins by Amazon have been offset by the huge diversity that the company has amongst its various businesses, including cloud computing, books, TV, and now food, with its new Amazon food stores in the U.S.
The technicals surrounding the stock still look bullish for Amazon. Traders looking for altcoin type gains may be left disappointed; however, the charts do show a clear path ahead towards the 4,000-resistance level.
Amazon Short-term Technical Analysis
According to the four-hour time frame a bullish inverted head and shoulders pattern is pointing to a coming rally towards the 4,000 level. Continued gains above the 3,430 level should be supportive for the 4,000-price target.
Additionally, the Ichimoku cloud on the four-hour time frame shows that the stock has cleared all forms of short-term resistance and has a strong bullish bias while the stock trades above 4,100 support level.
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Amazon Medium-term Technical Analysis
According to the daily time frame the Parabolic SAR indicator is giving its first major buy signal in nearly a month. The buy signal is in play while Amazon’s stock price holds above the 3,225-support level.
Traders should also note that the weekly and monthly time frames are also issuing buy signals. Additionally the William’s Alligator indicator is also flashing a buy signal. These are all price positive signs.
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