EARN25

Cowen Bullish on Amazon Before Earnings

Amazon earnings are due next Thursday night

Jan 25, 2019 at 10:08 AM
facebook X logo linkedin


Cowen chimed in on Amazon.com, Inc. (NASDAQ:AMZN) ahead of the e-tailer's quarterly earnings report, due after the market closes next Thursday, Jan. 31. The analyst believes Amazon's fourth-quarter earnings will arrive at the top end of previous estimates, driven by strong revenue growth in its advertising business, Amazon Web Services and e-commerce. This comes as the Wall Street Journal reports on the company's budding partnerships with firms to develop exclusive products for Amazon.com (subscription required).

Most brokerages are upbeat on the FAANG stock already, with 25 of 27 in coverage maintaining a "buy" or better rating -- and not a single "sell" on the books. Plus, the average 12-month price target of $2,138.39 is a 28.2% premium to AMZN's current price of $1,667.45, up 0.8% so far today.

This optimism is seen in the options pits, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Amazon stock's 10-day call/put volume ratio of 1.31 ranks in the 89th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip.

While Cowen is upbeat about AMZN's fourth-quarter earnings, it was a rough three-month stretch on the charts for the FAANG name. After entering October trading near its Sept. 4 record high of $2,050.50, the shares plunged all the way to a 10-month low of $1,307 by Dec. 24 -- bottoming near their 80-week moving average. Since then, Amazon has gained almost 28%.

 

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!