Amazon (AMZN.US), the world’s dominant e-commerce company will report earnings today after markets close. Market expects Amazon to report second-quarter revenue of $115 billion and earnings per share of $12.22, which would be increases of 29.4% and 18.6%, respectively, from the same quarter a year ago. Investors will also be focusing on revenue generated by Amazon Web Services (AWS), the company's high-margin cloud computing business. AWS still comprises a relatively small share of the company's overall revenue, but it generates the majority of Amazon's operating income. For Q2 analysts estimate AWS revenue growth of 30%, reaching $14.7 billion. In the first quarter, AWS revenue reached $13.5 billion, rising 32% year over year, besting the 22.5% growth rate expected. Overall Q1 revenue surged 44% on the year to $108.52 billion, while Q1 EPS of $15.79 topped consensus by $6.18.
Amazon (AMZN.US) stock price is testing lower limit of the triangle formation. Should break lower occur, then downward move may be extended to the $3530 handle or even support at $3425 which is marked with lower limit of the 1:1 structure and 200 SMA (red line). On the other hand, if buyers will manage to regain control, then another upward move towards all-time high at $3775.00 may be launched. Source: xStation5
