Amazon.com, Inc. (AMZN) is one of the most widely watched and analyzed stocks in the world. As one of the largest e-commerce companies and a major player in the cloud computing space, Amazon’s stock price movements are closely scrutinized by investors, analysts, and the media. One key metric that investors often focus on is the stock’s performance after hours, when the regular trading session has ended.
Amazon stock price after hours
After-hours trading, also known as extended-hours trading, occurs before the market opens or after it closes. This trading session allows investors to trade stocks outside of regular market hours, which are typically from 9:30 a.m. to 4:00 p.m. Eastern time. After-hours trading can be a volatile time for stocks, as the lack of liquidity can lead to large price swings in either direction.
When it comes to Amazon, the company’s after-hours trading activity is closely watched due to the impact it can have on the stock price the next day. A strong after-hours performance can signal investor confidence in the company’s future prospects, while a weak after-hours performance can indicate concerns about the company’s outlook.
In recent years, Amazon has been on a strong upward trajectory, with the stock price increasing by more than 70% over the past year alone. However, even with this strong performance, the company’s after-hours trading activity can still have a significant impact on the stock’s overall performance.
Let’s take a closer look at some recent examples of Amazon’s after-hours trading activity, and what they could mean for the company’s future.
Strong Earnings Report Sends Amazon Stock Soaring After Hours
In July 2021, Amazon reported its second-quarter earnings, and the results exceeded analysts’ expectations. The company reported earnings per share (EPS) of $15.12, compared to the $12.28 EPS that analysts had predicted. Additionally, Amazon’s revenue for the quarter was $113.1 billion, which was also higher than expected.
Following the earnings release, Amazon’s stock price surged in after-hours trading, rising more than 5%. This strong after-hours performance signaled investor confidence in the company’s ability to continue growing its revenue and earnings in the future.
Analysts pointed to a few key factors that contributed to Amazon’s strong earnings report. One was the company’s robust cloud computing business, Amazon Web Services (AWS), which saw revenue growth of 37% year-over-year. Additionally, Amazon’s e-commerce business continued to perform well, with revenue increasing by 16% year-over-year.
Overall, the strong earnings report and subsequent after-hours rally demonstrated Amazon’s continued dominance in the e-commerce and cloud computing spaces. The company’s ability to consistently deliver strong financial results has helped to drive investor confidence and fuel the stock’s long-term growth.
Investor Concerns About Future Growth Lead to After-Hours Dip
In contrast to the strong after-hours performance following the second-quarter earnings report, Amazon’s stock price dipped in after-hours trading in October 2021, following the release of the company’s third-quarter earnings.
Although Amazon beat analyst expectations for both revenue and earnings, investors were concerned about the company’s guidance for the fourth quarter. Amazon projected revenue of $146 billion to $156 billion for the fourth quarter, which was lower than analysts’ predictions of $157.4 billion.
In response to the guidance, Amazon’s stock price fell more than 2% in after-hours trading. The dip signaled investor concerns about the company’s ability to continue growing its revenue at a rapid pace, particularly as competition in the e-commerce and cloud computing spaces continues to intensify.
Additionally, some analysts pointed to concerns about rising costs for Amazon, particularly as the company continues to invest in new initiatives and expand into new markets. With increased competition and rising costs, some investors are worried.
Amazon Stock Surges After-Hours on Strong Earnings Report
On January 27th, 2022, Amazon.com, Inc. (AMZN) released its fourth-quarter earnings report, and the results exceeded analyst expectations. As a result, Amazon’s stock price surged in after-hours trading, rising more than 5%.
This strong after-hours performance signaled investor confidence in the company’s ability to continue growing its revenue and earnings in the future. Let’s take a closer look at the earnings report and what it could mean for Amazon’s future.
Fourth-Quarter Earnings Exceed Expectations
For the fourth quarter of 2021, Amazon reported revenue of $123.7 billion, an increase of 14% compared to the same quarter in the previous year. The company’s net income for the quarter was $5.5 billion, or $11.10 per share, up from $3.3 billion, or $6.47 per share, in the same quarter in 2020.
Both revenue and earnings per share exceeded analyst expectations. Analysts had predicted revenue of $140.3 billion and earnings per share of $7.34. Amazon’s actual revenue and earnings per share were well above these estimates.
The strong financial results were driven by growth in Amazon’s e-commerce business, as well as its cloud computing business, Amazon Web Services (AWS). Revenue from Amazon’s e-commerce business increased 12% year-over-year to $88.9 billion, while AWS revenue increased 27% year-over-year to $14.8 billion.
Additionally, Amazon’s advertising business continued to perform well, with revenue increasing 53% year-over-year to $12.2 billion. This growth was driven by an increase in advertising on Amazon’s e-commerce platform, as well as growth in its off-platform advertising business.
Investments in New Initiatives and Expansion
Amazon’s strong financial results were also driven by the company’s continued investments in new initiatives and expansion. During the fourth quarter, Amazon announced several new initiatives and partnerships that could help drive future growth.
One of the biggest announcements was the launch of Amazon’s own payment service, Amazon Pay. The service will allow customers to make purchases on third-party websites using their Amazon account information. This move will help Amazon expand its reach beyond its own e-commerce platform and into other areas of online commerce.
Additionally, Amazon announced several new partnerships during the quarter, including a partnership with McDonald’s to launch a new delivery service in the UK. The company also announced a partnership with Fiat Chrysler to integrate Amazon’s Alexa voice assistant into select vehicles.
These investments in new initiatives and partnerships could help Amazon continue to grow its revenue and earnings in the future, as the company expands its reach beyond its core e-commerce and cloud computing businesses.
Impact on Amazon’s Stock Price
Following the release of Amazon’s earnings report, the company’s stock price surged in after-hours trading. The stock price increased more than 5%, reaching a new all-time high.
The strong after-hours performance signaled investor confidence in Amazon’s future prospects. The company’s ability to consistently deliver strong financial results, even in the face of increased competition and rising costs, has helped to drive investor confidence and fuel the stock’s long-term growth.
Additionally, the launch of new initiatives and partnerships could help Amazon continue to grow its revenue and earnings in the future, as the company expands into new markets and strengthens its position in existing ones.
However, it’s worth noting that after-hours trading can be a volatile time for stocks, and the stock price could experience significant fluctuations in the days and weeks to come. Investors should continue to monitor Amazon’s financial performance and growth prospects in the coming months to assess the company’s long-term potential.
Amazon’s strong fourth-quarter earnings report and subsequent after-hours rally have demonstrated the company’s continued dominance in the e-commerce and cloud computing spaces.