Next Thursday is going to be an incredibly big day for Amazon and its investors. Naturally, this means that there is going to be quite a bit of opportunity for binary options traders surrounding the stock. The opportunity will come from the company's plans to release its earnings report. Today, we'll talk about Amazon's earnings history, what analysts are saying about this coming report, and how binary options traders can take advantage of the trends. So, let's get right to it…
Amazon Has A Strong History When It Comes To Earnings
One good way to get an idea of what to expect when an earnings report is released is to look at the company's earnings history. After all, if the company has a history of strong performance, there's no reason to expect to see weakness. Adversely, if a company has a history of weak earnings, we wouldn't expect to see much by way of positivity.
When it comes to Amazon however, the company has a compelling earnings history. According to StreetInsider, Amazon has beat earnings expectations in all but two over the past seven quarters. With such a strong earnings history, we can expect to see continued strength in earnings from the stock.
What Are The Analysts Saying?
It's also important to get a view of what analysts are expecting. After all, analysts make their livings crunching data and making predictions. If those predictions are incorrect too often, the analyst won't do very well.
With that said, analysts seem to have an overwhelmingly positive view of what we can expect to see. In fact, Michael Graham, #105 ranked analyst of 4,075 analysts at TipRanks recently weighed in on Amazon. He had an overwhelmingly bullish opinion of what we will see from earnings. Here's what Graham had to say.
“Q1 was perhaps Amazon's best quarter in recent memory, and it will be a tough act to follow. All segments performed well, however, and are expecting more of the same in Q2. We are generally comfortable with our 24% revenue growth outlook for Q2, which is down from 28% in Q1, and belive there is a decent chance the company is set up for another strong quarter relative to consensus. We see the biggest risk as being international eCommerce CSOI margin, where we are looking for a sequential uptick in Q2.”
How To Take Advantage Of The Trends
While I believe that Amazon is likely to blow away earnings on Thursday the 28th, no one can tell the future. The good news is that you don't have to. As binary options traders, the opportunity is going to be there for you regardless of how this goes.
In order to take advantage of the trends, you will want to watch the news surrounding the company's earnings release. If earnings are positive, as I expect they will be, we can expect to see strong gains on the stock, making the way for profitable call option opportunities. On the other hand, if Amazon releases a negative report, we can expect to see declines. In which case, you'll want to purchase call options in order to follow the downward trends down to the profits.
What Do You Think?
How do you think Amazon's earnings will turn out? Join the discussion in the comments below!
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