Amazon Inc. share price finds support ahead of Q2 earnings
Ahead of Amazon's Q2 2024 earnings report, analysts predict earnings per share of $1.01 and $148.54 billion in revenue. Discover how these forecasts and technical analysis could impact Amazon's share price and future performance.
When will Amazon report?
Amazon, the Nasdaq-listed, world-leading online consumer retail business, will report its second quarter (Q2) earnings on Friday, 2 August 2024 at 6.01am (AEST). Analysts are predicting a pivotal report that could influence Amazon's stock trajectory.
Expected earnings
Earnings per share (EPS): $1.01
Revenue: $148.54 billion
Amazon’s guidance for Q2
Amazon's net sales for the second quarter of 2024 are expected to be between $144.0 billion and $149.0 billion, reflecting a growth of 7% to 11% compared to the same quarter in 2023. This forecast takes into account an anticipated unfavourable impact of approximately 60 basis points due to foreign exchange rates. It's worth noting that in the first quarter of 2024, the Leap Year effect contributed an additional 120 basis points to the year-over-year net sales growth rate.
In terms of operating income, Amazon projects it to be between $10.0 billion and $14.0 billion for Q2 2024, up from $7.7 billion in the second quarter of 2023. This significant increase underscores the company's robust operational performance despite the challenging economic environment.
Analyst price targets
Based on inputs from 44 Wall Street analysts offering 12-month price targets:
- High Forecast: $250.00
- Low Forecast: $200.00
- Average Target: $224.60, representing a 24.21% change from the last price of $180.82.
Stock trend and investor sentiment
Despite a recent correction from all-time highs, the long-term trend for Amazon remains upward. In the short term, the stock has seen a correction, bringing the price back to support and into oversold territory. Ninety-three per cent of IG clients with open positions on Amazon expect the share price to rise in the near term, while six per cent expect the price to fall.
IG client sentiment positions
IG client sentiment
Amazon technical analysis
The long-term trend for Amazon remains up. In the short term, we have seen a correction from all-time highs, bringing the price back to support and into oversold territory.
Traders respecting the long-term trend would prefer to keep a long bias to trades on the stock. A bullish price reversal off the $180.60 support level, if confirmed, would suggest a move back towards recent highs at $200.75. In this scenario, a close below the $173.45 level might be used as a stop-loss indication.
Amazon daily chart
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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