AMAZON TOPS Q1 PROFIT ESTIMATES, STOCK ABOVE ALL MAs
In the Premarket trading session on Friday, Amazon’s stock was trading at 1937.10-higher by 1.82% as compared to its previous close.
The e-commerce giant reported its first-quarter earnings after the market close on Thursday. The company generated EPS of $7.09 for the first quarter of 2019. The EPS was above the consensus estimates of $4.72. Revenue of $59.7 billion was just above the market expectation of $59.65 billion. Amazon’s total revenue rose 16.9% as compared with the year-ago period. It was the slowest rate of expansion since the first quarter of 2015.
The online retailer’s operating profit guidance for the second quarter came in the range of $2.6 billion and $3.6 billion. The guidance was below the median forecast of $4.2 billion. The company’s CFO said that part of the lower guidance is due to an $800 million investment in making free one-day delivery shipping the default for Prime members.
The e-commerce giant also announced that it now has more than 30 million active users for its Fire TV streaming device. Amazon stocks have rallied 28% so far in 2019.
On the technical front, the current price is above the MA5 and MA20. The current price is above the upper band of the Bollinger Bands and is heading upwards. The stock is expected to trade higher today.
TRADE SUGGESTION- LIMIT BUY AT 1936 TAKE PROFIT AT 1944 STOP LOSS AT 1932