AMAZON MISSES PROFIT EXPECTATIONS, STOCK FALLS BELOW MA5
Amazon is currently trading at 1,938.91-lower by 1.77% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 1.45%. The stock has continued falling after the opening bell.
The e-commerce giant reported its second-quarter earnings after the market close on Thursday. Amazon generated an EPS of $5.22 for the second quarter. The EPS was below the market expectation of $5.57. The company brought in $63.4 billion in revenue for the second quarter. The revenue was, however, above the consensus estimates of $62.5 billion.
Amazon expects third-quarter operating income in the range of $2.1 billion to $3.1 billion. The income forecast was below the market expectation of $4.4 billion. Stocks of the company have rallied 32% so far this year.
On the technical front, the current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards. The RSI is currently at 47.05% and suggests that the market can move in the downward direction.
TRADE SUGGESTION- LIMIT SELL AT 1940.00 TAKE PROFIT AT 1935.00 STOP LOSS AT 1942.50