Pull up a chart on AMZN and check out what it's done each time after earnings. Amazon.com (AMZN) Earnings Date Qtr EPS 10/22/15 Q315 $0.17 7/23/15 Q215 $0.19 4/23/15 Q115 -$0.12 1/29/15 Q414 $0.45 Yup, I missed it too.
Assuming no inside information, or leak before report (many times evidently seen in daytrading action of the earnings date), the outcome is for the most part, EXTREMELY random. You cannot possibly conclude a pattern out of a sample of, wait for it, hmm not 100, not 50, no, FOUR! LOL
Always makes me want to sell short, but the stock has the darnd'est propensity to increase in price. Apparently from what I hear in the media the real business here is in IT infrastructure of some sort eg "cloud" & such. When I hear "cloud" what jumps to mind is a fancy re-branding of good-ol' COMMODITY industry of data storage & servers, that's all. But hey, what do I know? nothing! As far as the retail business the dynamic at play is more similar to Wall Mart of days past then people realize. Destroy all competition by using shear size & low pricing, in this case by operating at a loss. That of itself IMO is a very bad thing for society in general. But that aside, what is the end game here? Eliminate most smaller operators, mom & pops, small & mid sized businesses alike, & replace w/ one monster corporation. Once that is effectively achieved the one victor will eventually seek to operate at a profit, so that means you now have effectively and to a large extent a monopoly raising prices. Yeah what can possibly go wrong?
$AMZN has full virtual and mortar infrastructure. Content will be their next conquest. WRT profits, they are just beginning and can turn the price knob 1% and start creating huge profits. $FB is doing similar things. These leveraged techniques are all out of $GOOG playbook, just further along in the cycle.
Below average traffic and high RSI...I'm thinking this gain could be given back...or at least that there's not much more to go up.
odds of 5 quarterly beats in a row are extremely unlikely, but shorting closer to next ER would be a better trade than shorting it here
2 of the 4 richest people in the world are Americans who founded technology firms. Bill Gates of $MSFT & Jeff Bezos from $AMZN
I think AMZN is more into selling shovels to gold miners than searching for one themselves. They offer the infrastructure to those who provide cloud computing.