Shoppers may have their eyes on the exclusive deals featured on Amazon Prime Day, which runs from Tuesday to Wednesday. But other factors have also drawn investors' attention to Amazon.com. Here are three more primary reasons to keep an eye on Amazon stock right now.
Amazon Stock Joins Nvidia, Meta On IBD Leaderboard
Alongside Nvidia and Meta Platforms, Amazon is one of three Magnificent Seven stocks featured on IBD Leaderboard, an exclusive list of top growth stocks actively managed by IBD experts.
Recently becoming a member of the $2 trillion market capitalization club, Amazon continues to innovate after CEO Andy Jassy took the helm from founder Jeff Bezos in July 2021. The e-commerce and cloud computing juggernaut has a large presence in artificial intelligence alongside Nvidia, Meta, Microsoft, Alphabet and other Mag 7 companies.
Its Amazon Web Services cloud business remains a key plank of Amazon's business. Amazon also plans to take on China-owned deep-discount online retailer Temu with a new e-commerce offering of its own. Temu is owned by PDD Holdings.
AI Is Fueling A 'Nuclear Renaissance.' Bill Gates And Jeff Bezos Are In The Mix.
Amazon Earnings On Tap After 216% Growth Last Quarter
Earnings season also brings Amazon, as well as Meta and Nvidia, into focus.
Last quarter, Amazon continued an impressive rebound that started last year. The company posted 216% earnings growth to 98 cents a share. Revenue rose 13% to $143.3 billion, marking a fourth straight quarter of double-digit gains.
Set to report on July 25, Wall Street expects Amazon to post 58% earnings growth to $1.03 a share for Q2. For the full year, analysts see 58% earnings growth to $4.59 per share, followed by a 28% rise to $5.86 per share in 2025.
Meta is on tap to report Q2 earnings on July 31. Nvidia is expected to report earnings on Aug. 15.
Amazon Stock In Buy Zone Ahead Of Earnings
The current chart action gives investors another reason to keep a close eye on Amazon stock.
Since clearing a 191.70 buy point in a flat base on June 26, Amazon remained in buy range since before dipping just below the initial entry on Monday. But the stock came off the day's lows to close in buy range at 192.72. The ideal buy zone stretches from 191.70 to 201.29.
In a sign of technical strength, the 21-day exponential moving average continues to rise after climbing above the longer-term 50-day line last month. But the relative strength line for Amazon stock could use some work. Look for that to turn higher to show rising market leadership.
Meanwhile, Nvidia stock remains not far off its record highs as it holds support at its 21-day line after shaking off recent spats of selling. Nvidia investors are cautious while analysts remain bullish on the AI chipmaker.
Meta stock has slipped below the 514.81 buy point it cleared earlier. It has also dipped below its 21-day line but remains above the 50-day benchmark.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
