Amazon Q1 Earnings: A Conundrum, Despite EPS And Revenue Beat (NASDAQ:AMZN)

HJBC

Amazon.com, Inc. (NASDAQ:AMZN) reported its much-awaited Q1 earnings report after-hours on Thursday, April 27th as Seeking Alpha covered here. The stock soared after-hours initially to $122 before crashing back to close the week at $105. That makes me believe there should be plenty of good and bad news in the report/conference call for a behemoth like this to have a 15% swing in stock price.

Let's get into Amazon's edition of Good, Bad, and Ugly after its latest earnings report.

AMZN Earnings History (Google Finance)

"Our Advertising business continues to deliver robust growth, largely due to our ongoing machine learning investments that help customers see relevant information when they engage with us, which in turn delivers unusually strong results for brands."

CapEx (arnnet.com.au)

AWS Growth (nextplatform.com)

Despite the weakness in price action on Friday, Amazon's stock is in decent shape technically, as the stock is above or extremely close to all the commonly used moving averages. The 200-Day moving average, for example, is only 2% away. It is safe to say that at $105, the stock's short to medium-term downside looks limited unless the market in general weakens due to macro conditions, including but not limited to the Federal Reserve policies and inflation.

AMZN Moving Avgs (Barchart.com)

I still believe in the company's ecosystem strength. I still rate the stock a buy, but only if you are in the game for long-term. Amazon's revenue used to beat the pants out of inflation (despite profit concerns) but now even the revenue growth pales in comparison to inflation. I don't believe the company and the stock are quite done adjusting for previous excesses, and that may present enticing opportunities for the long-term.

What do you think about Amazon's Q1 and its future? Please leave your comments below.

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