Amazon share price movements post-earnings: trends investors should watch
With Amazon set to report its Q3 2024 earnings on 1 November, this article examines how its share price typically moves after earnings and provides investor insights.
(AI summary)
Shipping profits? Amazon's share price delivers after earnings
Amazon will report its third (Q3) 2024 financial results on Friday, 1 November at 7.00am (AEDT).
Amazon's share price has historically shown varied reactions in the days, weeks, and months following each earnings release. This article provides insights into the short and medium-term movements post-earnings and the patterns that can help investors make informed decisions.
Key financials
Expectations for Q3 2024
- Revenue: $152.27 billion
- Revenue growth: 11% year-on-year (YoY)
- Earnings per share (EPS): $1.14
Comparison to previous quarter
- Revenue: $148 billion
- EPS: $1.26
- EPS growth: 101.49% YoY
Post earnings performance analysis
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Immediate reactions (one day)
Amazon’s share price frequently shows sharp movements on the day after earnings, reflecting immediate investor sentiment. For example, Q3 2022 saw a steep one-day drop, likely due to disappointing results, while Q3 2023 showed strong gains, suggesting positive sentiment in response to favourable outcomes. These single-day shifts underscore the market’s sensitivity to Amazon’s earnings performance
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Short-term adjustments (one week)
Within a week, share price changes generally reflect a more tempered but still reactive phase. In Q3 2023, the stock continued to rise, indicating sustained confidence, whereas fourth quarter (Q4) 2022 saw declines as initial optimism faded upon closer scrutiny. This one-week period captures a fuller, yet still short-term, market response
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Medium-term trends (one month)
One-month price movements highlight whether initial sentiment holds up. For instance, Q3 2023 showed continued gains, likely buoyed by positive guidance, whereas Q4 2022 and second quarter (Q2) 2024 saw extended declines, reflecting reduced investor confidence. This timeframe provides a broader view of sentiment around Amazon’s quarterly performance
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Overall patterns
Positive earnings surprises and strong guidance tend to support share price gains across all timeframes, while weaker results, such as those in Q4 2022, often lead to sustained declines. The stock’s ability to maintain early gains generally depends on strong fundamentals or optimistic guidance
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Implications for investors
For investors, Amazon's immediate post-earnings price movement can indicate short-term trends but is not always predictive of longer-term performance. Recognising patterns over days, weeks, and months allows investors to anticipate potential price movements, enabling more strategic decisions around buying, holding, or selling Amazon shares based on quarterly results and broader market conditions.
Amazon's post-earnings performance 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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