“Amazon (AMZN) Stock Analysis: Will Earnings Beat Expectations and Boost Share Price?”
Amazon’s share price has dropped by nearly 10% as investors shift towards small-cap stocks amid lower interest rates. With the upcoming earnings report on August 1, it’s uncertain how the stock will react.
While analysts remain bullish on Amazon, the market has been critical of tech earnings overall. This could impact Amazon’s performance post-earnings, especially if results aren’t exceptional.
As an investment manager, I recommend caution when trading Amazon stock post-earnings. Consider selling cash-secured puts at a strike price of $160 to $170 to capitalize on potential price drops. This strategy allows you to buy Amazon stock at discounted levels if the price falls.
Factors like rising capital expenditures for AWS and decreased consumer spending could impact Amazon’s performance. Keep an eye on these trends to gauge the stock’s direction after earnings.
In conclusion, while I’m hesitant to buy Amazon stock now, I’m prepared to do so if the market undervalues it post-earnings. Stay informed and make strategic moves to maximize your investment potential.