Amazon Stock Leaps After Earnings Top Forecasts
Amazon.com shares finished Friday sharply higher, with the mega-caps gains helping to support a drooping S&P 500.
The e-commerce giant rose over 8% adding more than $100 billion in market cap, according to Dow Jones Market Data after reporting quarterly earnings that were nearly double what analysts had expected.
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Amazon Stock Leaps After Earnings Top Forecasts!
The e-commerce giant rose over 8% adding more than $100 billion in market cap, according to Dow Jones Market Data.#Amazon #ecommerce #stockmarketnews pic.twitter.com/RzYj5ZQFLI— The_Journalbiz (@the_journalbiz) August 7, 2023
Factset chart: Amazon
Analysts said the results suggested Amazon’s cost-cutting efforts, which have included tens of thousands of job losses, are beginning to bear fruit following a challenging 2022.
Thursday’s earnings mark an “inflection” point for Amazon, which should propel a sustained climb in the company’s share prices, UBS analysts said.
However, investment bank DA Davidson sounded a note of caution, saying Amazon’s cost-cutting measures could have a negative impact on future sales.
The surge represented Amazon stock’s best day this year. The biggest daily percentage gain the stock has recorded in 2023 was a 7.4% rise on Feb. 2, according to FactSet.
