Amazon.com is breaking past a trendline entry near 227 as fourth-quarter results lay on the horizon. That allows an early buy point as the stock continues to form a flat base. A proper entry at 233 — which is also an all-time high for Amazon stock — is another buy point.
The Relative Strength Rating shows the stock has performed better than 88% of other stocks in the Investor's Business Daily database. The Composite Rating is nearly ideal at 98.
The relative strength line on the weekly IBD MarketSurge chart is at a 52-week high. Chart analysis shows other strong points for the stock. Shares are in an early stage base, according to MarketSurge's pattern recognition. Early bases historically tend to net higher gains than later-stage bases.
Although the EPS Rating lags just a bit at 79 due to decelerating earnings growth in the second and third quarters, analysts expect earnings of $5.15 per share for the full year. That would be a 78% annual increase, according to MarketSurge. In 2025, analysts are modeling $6.26 per share in earnings.
The Dow Jones component has not been idle in the new year and plans a massive $11 billion investment in data centers and AI cloud infrastructure in Georgia. The company has already invested $18.5 billion in the state.
Although the earnings date has not been set yet, Amazon announced its 2023 fourth-quarter results on Feb 1. last year. More than 90% of analysts covering the e-commerce and cloud computing behemoth have a buy rating on the stock.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
Amazon Stock Beats Third-Quarter Views
Shares gapped up after third quarter earnings on Oct. 31, when the Magnificent Seven leader beat sales and earnings estimates. Amazon's $158.9 billion in sales was higher than analysts' projections of $157.3 billion. Earnings per share of $1.43 were also higher than views of $1.14.
For the current quarter, midpoint sales guidance of $185 billion was lower than estimates of $187.3 billion. Earnings estimates stand at $1.48 per share for the quarter.
Mutual funds own 40% of Amazon stock. The American Century Focused Dynamic Growth Fund (ACFSX) and MFS Growth Fund (MFEGX) hold shares of the stock. Both funds are part of the Investor's Business Daily Mutual Fund Index.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
