Amazon.com, Inc. (NASDAQ:AMZN) shares are trading higher Thursday. The company reported first-quarter financial results on Wednesday after the market closed.
- Amazon shares are testing new highs. Why are AMZN shares at highs?
Q1 Highlights
Amazon reported earnings per share of $2.78, beating the consensus estimate of $1.66. In addition, it reported revenue of $181.51 billion, beating the consensus estimate of $177.30 billion and representing 17% year-over-year increase.
North America segment revenue rose 12% to $104.1 billion, while international segment revenue climbed 19% to $39.8 billion. AWS revenue increased 28% to $37.6 billion, reflecting 28% year-over-year expansion and marking its fastest growth in 15 quarters.
"We’re making customers’ lives easier and better every day across all our businesses, and their response is driving significant growth," said CEO Andy Jassy.
Amazon expects second-quarter revenue of between $194.00 billion and $199.00 billion, versus the consensus estimate of $188.87 billion.
Long-Term Uptrend Holds Despite Death Cross
Amazon is trading above the top end of its prior 52-week range after setting a 52-week high in April, which points to sustained demand at higher prices. The stock is trading 12.2% above its 20-day simple moving average (SMA) and 20% above its 100-day SMA, which leans toward a strong short-term and intermediate uptrend.
The relative strength index (RSI), a momentum gauge, is 76.68, which is in overbought territory and signals momentum is running hot. RSI at 76.68 shows buyers have been in control lately, but it can also mean pullbacks get sharper if sentiment cools.
Over the past 12 months, the stock is up 42.63%, which is consistent with a longer-term uptrend staying intact despite shorter-term swings. One chart wrinkle to keep in mind is the death cross in March (50-day SMA below the 200-day SMA), a longer-term caution flag that can take time to fully unwind.
- Key Resistance: N/A — price is in breakout territory, so prior highs may act as reference points.
- Key Support: $226.50 — an area where buyers previously showed up and defended the trend.
Amazon Shares Edge Higher
AMZN Price Action: At the time of publication, Amazon shares are trading 3.44% higher at $272.10, according to data from Benzinga Pro.
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