Amazon ended the first quarter with a very sluggish revenue increase, +7% to $116.4 billion in the last three months of last year – the slowest year-over-year expansion rate since 2001. Earnings per share, which was below forecasts, was penalized by the $ 7.6 billion loss generated by the investment in Rivian. The forecasts for the second quarter are below expectations. Revenues are estimated at between $116 and $121 billion. The range of the operating income is very wide, ranging from a loss of one billion dollars to a profit of 3 billion. In Amazon’s case, therefore, both the results and the outlook penalizes the stock.
Amazon.com [AMZN.N], closed yesterday with a -5.1% fall to $2,175, pre-trading the stock drops -0.2% to $2,174. This has characterized Amazon’s equity story from summer 2020 between the resistance at $3,700 and the support at $2,880 (repeatedly violated and recovered) seems to be a distribution phase. The stock took our target of $2,500 and subsequently also that of $2,300. The stock ,yesterday, broke the 61.8% fibonacci retracement with strong volatility and now points to the area of $2,000.
We recommend a multiday operation: SHORT on the stock, buying Leverage Shares Amazon ETP with -1x leverage, ISIN IE00BKT66S86, for a short term target towards $2,000. Alert / stop loss above $2.360.