Amazon reports earnings this week and it's been one of the best companies of the decade. The growth seems to never end. I don't have a position, but I watch Amazon closely to see what's going on at the company.
The key for me is quarterly revenue growth. They saw a massive boom in revenue during the first part of the lockdown. The question now is: what next? Does that growth continue? One thing I have been thinking about is as the lockdowns eased and people went about their lives, more and more people realized how important it was to get out and support local businesses. I think that may actually impact Amazon which is largely a drop ship hub for things made overseas. Let's find out...
Also, AWS has been their big winner. But, as the cloud grows so to do more competitors and companies offering cloud solutions. From Google to Microsoft and IBM and even more upstarts, AWS does not have as much of a free lunch as it once did. Oh, Cisco and TikTok, too. This is going to get really competitive. I will also be watching margins closely.
Amazon is a fantastic company that has proven the naysayers wrong over and over again. There's no reason to bet against it. That's why I am just going to be watching this upcoming earnings report closely, waiting for those growth numbers and margins. Maybe I will trade it after that.
Thanks for reading! How will you trade Amazon?
The key for me is quarterly revenue growth. They saw a massive boom in revenue during the first part of the lockdown. The question now is: what next? Does that growth continue? One thing I have been thinking about is as the lockdowns eased and people went about their lives, more and more people realized how important it was to get out and support local businesses. I think that may actually impact Amazon which is largely a drop ship hub for things made overseas. Let's find out...
Also, AWS has been their big winner. But, as the cloud grows so to do more competitors and companies offering cloud solutions. From Google to Microsoft and IBM and even more upstarts, AWS does not have as much of a free lunch as it once did. Oh, Cisco and TikTok, too. This is going to get really competitive. I will also be watching margins closely.
Amazon is a fantastic company that has proven the naysayers wrong over and over again. There's no reason to bet against it. That's why I am just going to be watching this upcoming earnings report closely, waiting for those growth numbers and margins. Maybe I will trade it after that.
Thanks for reading! How will you trade Amazon?
I work at TradingView helping to build charts, tools, and software for everyone interested in financial markets.
Twitter: twitter.com/scheplick
Blog: scheplick.com/
Twitter: twitter.com/scheplick
Blog: scheplick.com/