What to expect from Amazon and Twitter when they report?
Fiona Cincotta July 20, 2020 7:49 AM
As earning season ramps up we look at what to expect from Twitter & Amazon when they report on Thursday 23rd and 30th July respectively.
The stock reports as it is trading more than 60% higher YTD boosted by its e-commerce strength and its AWS cloud platform. Costs will once again be under the spotlight in Q2 earnings, particularly after Jeff Bezos said that he was less focused on near term profits, instead prioritizing improving the customer experience. Earnings come at a time when investors are starting to rotate out of stay at home stocks into value stocks, with Amazon dropping -7% last week. Expectations are for EPS $1.63 on revenue of $63.40 billion.
Whilst Amazon might have dropped sharply across the previous week, the stock remains above its 50, 100 and 200 daily moving averages and above its ascending trendline. The sell off did however, bring the stock out of overbought territory, so more buying could still be on the cards
Immediate resistance would be at the key psychological $3000 mark, prior to the all-time high of $3344.
On the flip side, immediate resistance from the ascending trendline can be seen around the $2850 level, prior to support at $2800 and around $2630.
Twitter’s share price was under pressure at the end of last week in the wake of an historic security breach which poses a serious and potentially long-term risk for the social media company. The breach adds an extra layer of costs to ensure there isn’t a repeat scenario. Over the longer term, it raises concerns over the safety of other users and data. An erosion of trust could well manifest itself in weaker investor sentiment and a lower share price. Twitter is up 9% YTD the weakest performer among its peers. Expectations EPS -$0.03 on revenue $697.56 million.
Despite no trading as bullishly as its peers, Twitter remains above its 50,100 and 200 daily moving average and above its ascending trendline on a bullish chart which could indicate more upside is on the cards.
Immediate resistance can be seen at $37 (high July 8th) prior to $39 (high 20th February).
On the down side, immediate support can be seen at 33.40 (low 14th July) prior to the 50 daily moving average at $32.50 and the 200 sma at $31.90
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.