AMZN Could Fly On Earnings

This is why I'm betting AMZN does well on earnings today AH!

For starters, AMZN is down 6.85% at the time of writing this today, meaning, the market is already scared with what happened to (FB, NFLX, PYPL, etc…) and many investors are getting out in an effort to protect themselves if AMZN blows earnings. So, a bad earnings could be partially priced in with this decline.

Second, AMZN blew earnings last quarter (Q3 '21) when they had a 59.4% decline in Net Income forcing a small sell off back in Oct of last year. Now, their expectations are 50% lower than they were in Q4 of '20 ($7 EPS vs. $3.67 EPS for this quarter) so much of their slower growth/high transport cost has been priced in.

Third, their stock is already down nearly 26% from its November high, so the likelihood of another massive correction like we saw with FB/NFLX is unlikely since investors have already sold off. While, there is always room to go down more, if AMZN offers any kind of positive guidance, I believe the stock will do very well!

tl;dr

While this is still a risky play since investors have not been kind to slowing growth of these companies, AMZN has done a lot of bleeding already, their EPS estimates are in the trash, and everyone is already fearful of whats to come. Could be the high-risk semi-smart play that works out!