What to expect and how to trade the Q1 2021 Amazon results
In this article we look at what to expect and how to trade the upcoming Amazon Q1 2021 results.
When is Amazon earnings date?
Amazon, the Nasdaq-listed, world-leading online consumer retail business will report its first quarter (Q1) earnings for 2021 on Thursday 29 April 2021.
Amazon results Q1 2021 earnings preview, what to expect?
Amazon expects to the Q1 results to show net sales to have increased by between 33% and 40% from the prior year’s comparative quarter (Q1 2020) to a range of between $100 billion and $106 billion. The net income growth is expected to benefit in part from favourable currency exchange rates over the period. Operating income is projected to be realised within the $3 billion to $6.5 billion range which finds comparison with the prior years quarterly figure of $4 billion. The reporting quarter anticipates around $2 billion in costs pertaining to the impact of Covid-19.
The average revenue and earnings per share (EPS) estimates for the upcoming Amazon results are $104.4 billion and $9.50 respectively.
How to trade the Amazon results
A Refinitiv data poll surveying 47 analysts maintains a consensus long-term average rating of buy for Amazon (as of 26 April 2021), with 18 of these analysts recommending a strong buy, 27 recommending a buy, two hold, zero sell and zero with a strong sell recommendations on the stock. The median long-term share price target from these analysts is $3393.18.
Recent broker rating updates (in March and April 2021) are as follows:
- Oppenheimer maintains buy rating
- Credit Suisse maintains buy rating
- UBS maintains buy rating
- Jeffries maintains buy rating
- JP Morgan maintains buy rating
- Morgan Stanley maintains buy rating
94% of IG clients with open positions on Amazon (as of the 26 April 2021) expect the share price to rise in the near term, while 6% of IG clients with open positions on the company expect the price to fall.
Amazon: technical analysis
The long-term price trend for Amazon remains up, while in the medium term we have a broad sideways rangebound price environment. In the short term, the price is overbought at resistance.
Traders respecting the long-term uptrend would look to keep a long bias to trades on Amazon, although be weary of the short-term bearish price reversal off resistance and from overbought territory.
Our preference is to wait for short-term weakness to play out, and look for a bullish price reversal somewhere at any of the 3170, 2960 or 2880 support levels for long entry. Alternatively, long entry could also be considered on an upside break of range resistance at 3540.
Summary
- Amazon Q1 2021 results are set for release on the 29 April 2021
- Revenue for the quarter is expected to be realized at $104.4 billion
- EPS for the quarter is expected at $9.50
- The consensus analyst rating on Amazon is buy
- The mean of analyst forecasts arrives at a long-term price of $3993.18
- The majority of IG clients with open positions on Amazon expect the price to rise
- The long-term trend for Amazon remains up, although in the short term the price is overbought at resistance
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. 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. See full non-independent research disclaimer and quarterly summary.
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