Ahead of this afternoon's earnings report the stock is down $184.75 (6.13%) at $2827.50.
Although chartology was very helpful in watching the 3200 -3600 range for a breakout or breakdown - this is from a December 2020 post:
....All of which means AMZN will be touted as an exemplar of ESG and poured into portfolios while the stock is rangebound since July after the Covid-19 double from the lows:
And October 2021:
The stock is down $135.43 (-3.93%) at $3311.14.
Here's the twelve-month chart via BigCharts:
The $3200 area has been support over the last five months but the problem with that sort of facile analysis is that each time a stock drops to support it absorbs buying and buying enthusiasm such that if it breaks support AMZN could easily drop another 10%. Happy Holidays.
Now that the price has collapsed we are left with guessing how the market will react to earnings and more importantly, forward guidance.
From Seattle's own GeekWire, February 1:
Amazon will report its fourth quarter earnings Thursday afternoon, revealing financials for the critical peak shopping season.
Analysts are expecting revenue for the holiday quarter at $137.6 billion, up about 10% year-over-year and coming in on the higher end of the company’s guidance. It would set a quarterly record for revenue and would push full-year 2021 revenue to approximately $468 billion, also a new record.
Earnings per share is estimated to come in at $3.70, compared to $14.09 in the year-ago quarter.
Amazon’s profits also plunged in the third quarter. Amazon CEO Andy Jassy in October warned that profitability would again take a hit in the fourth quarter “as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs—all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season.”
Amazon CFO Brian Olsavsky added that the availability of workers became Amazon’s primary challenge in keeping packages moving smoothly through its system in the third quarter, not the normal limiters of storage space or fulfillment capacity.
Olsavsky said the overall shortage of labor in the U.S., combined with Amazon’s increasing need for workers has resulted in increased wages and sign-on incentives as companies compete for scarce workers.
The company employed 1.468 million people worldwide as of the end of the third quarter, up from 1.335 million people at the end of the second quarter.....
....MUCH MORE
