Earnings season is in full swing and today after the market closes another set of major US companies will publish their quarterly figures with Amazon and Twitter among them.
In the case of Amazon (AMZN.US), analysts expect EPS of $9.56 compared to $5.01 for Q1 FY 2020. It is expected that the revenue growth of the entire company will rise sharply compared to the previous year. Revenue is expected to increase to 104.5 billion compared to 75.5 billion one year ago. A key metric to look for is expansion of cloud services business otherwise known as Amazon Web Services (AWS). Analysts expect that this segment will still post strong revenue growth, but slower than before the pandemic. In Q1 FY 2021, analysts expect that AWS revenue will rise 28.7% YOY to 13.1 billion compared to 10.2 billion recorded in Q1 FY 2020.
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Amazon (AMZN.US) stock is approaching its all-time high at 3553.32 which coincides with the upper limit of the ascending channel. Source: xStation5
When it comes to Twitter (TWTR.US) analysts expect first-quarter earnings of $0.14 per share, which represents YoY growth of over 27% from $0.11 per share seen in the same quarter a year ago. According to the company's guidance, revenue of between $940 million and $1.04 billion and an operating loss of $50 million to breakeven is expected. Meanwhile analysts are expecting revenue of $1.02 billion and losses at the bottom-line to widen from the year before. However investors will mainly focus on growth of Twitter's user base. At the end of 2020 the company recorded 192 million monetizable daily active users compared to 187 million at the end of September. However, the growth rate of new users began to decline since the Q2 FY 2020, when it reported 34% year-on-year growth. That declined to 29% in the Q3 and to 27% in Q4.
Twitter (TWTR.US) stock is currently trading approximately 20% from its all-time highs of $ 80.63 and is testing the lower limit of the wedge formation. Source: xStation5
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