How to Trade Amazon After Q3 2024 Performance Report

Amazon is a company that most likely needs no introduction. Largely known for its e-commerce platform, Amazon.com, it is now a giant in a wide range of industries including logistics, online streaming and cloud computing. 

Learn more about Amazon's third-quarter 2024 performance and what analysts are forecasting for the stock. 

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Amazon Q3 2024 Performance

Here are some of the key highlights from the third-quarter 2024 earnings report from Amazon: 

• Earnings per share of $1.43 vs $1.14 expected 
• Revenue of $158.88 billion vs $157.20 billion expected 
• Sales up 19%, compared to 12% same time last year 

Amazon posted better-than-expected results on most financial metrics including earnings and revenue. Its advertising revenue came in as expected at $14.3 billion while its cloud division, Amazon Web Services (AWS), recorded revenue of $27.4 billion which was lower than the $27.5 billion expected.  

The company's capital expenditure was up 81% year-over-year to $22.62 billion as it invested heavily into new data centres and equipment to power its artificial intelligence products in its cloud and e-commerce businesses. There are plans to announce an upgraded Alexa voice assistant using generative AI technology.  

While the company is investing in new technology infrastructure, it remains to be seen how fast any returns can be achieved. Some investors may be concerned that revenue in its AWS cloud division is starting to slow compared to other cloud services from Microsoft and Alphabet.  

Even though Amazon has forecast revenue growth of 7% to 11% in the current quarter, this is lower than the midpoint of analyst expectations. While the stock is trading near all-time highs, analysts at Wells Fargo downgraded it to a hold due to the headwinds from increased competition and slowing cloud and advertising revenue. 

Amazon Stock Forecast - What do the Analysts Say?

According to 45 analysts polled by TipRanks for an Amazon stock forecast in the past 3 months, there are currently 44 buy, 1 hold and 0 sell ratings on the stock. The highest price level for a Amazon stock forecast is $285.00 with the lowest price target at $197.00. 

The average price target for a Amazon stock forecast is $237.10.

An Example Trading Idea for the Amazon Stock Price

An example trading idea for the Amazon share price could be as follows:  

• Buy the stock on a break above $202.00 to allow for volatility. 
• Target just below the highest analyst price target of $285.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 6 months  
• If you buy 10 Amazon shares:  
  • If target is reached = $830.00 potential profit [($285.00 - $202.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as some analysts are now downgrading the stock due to multiple headwinds that could affect revenue growth.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Amazon stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.

How to Buy Amazon Stock in 4 Steps  

With Admirals, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

1. Open an account with Admirals to access the dashboard.
2. Click on Trade or Invest on one of your live or demo accounts to open the web platform.
3. Search for your stock in the search window at the top.
4. Input your entry, stop-loss and take profit levels in the trading ticket.

Click on the banner below to trade Amazon stock today ▼▼▼ 

Do You See the Amazon Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Amazon share price will move lower, then you can also trade short from a CFD trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to speculate on rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following: 

• This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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• The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
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