shares of Amazon (AMZN 7.64%) There was no major news for the tech giant, but it was on the rise today.
Instead, stocks seemed to sympathize and rise meta platform (meta 28.18%), soared after reporting earnings last night. Amazon’s earnings report is due out after the market close today, and investors hope to benefit from similar tailwinds.
As of 12:11 PM ET, Amazon stock was up 6.2%, while Meta stock was up nearly 25%.
FAANG stocks appear to be regaining support after a dismal performance by a group of tech stocks in 2022. Earnings he fell 4%, but increased 2% on a constant currency basis, and earnings per share plummeted to 52%. Adjusting for his $4.2 billion restructuring costs associated with layoffs and office and data center closures, that equates to 18%.
Encouraged by the company’s new efforts to control costs and drive profitable growth, investors hope Amazon can pull off similar tricks when reporting earnings.
Like Meta, Amazon has also announced massive job cuts in recent months, severing ties with its 18,000 corporate employees. This could significantly improve profitability after slowing revenue growth and widening losses in the e-commerce sector through 2022. .
Analyst estimates are set low for Amazon’s fourth quarter, but this could be an easy hurdle for Amazon to jump over. Consensus expects earnings to rise 5.8% to $145.4 billion, while earnings per share he is expected to fall from $1.39 to $0.17.
Meta and Amazon aren’t close competitors, so today’s rise in Amazon stock may seem a little unnatural, but it reassures investors that Amazon is beating estimates and controlling costs as well. If it can, the stock could continue to soar.
Amazon’s stock is already up nearly 40% from its December low, but is still down about the same percentage from its all-time high. please.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randy Zuckerberg, former director of market development and spokeswoman for Facebook and sister to his CEO of his platform, Mark Zuckerberg, is a member of the Motley Fool’s board of directors. Jeremy Bowman has held positions at Amazon.com and Meta Platform. The Motley Fool has positions on and endorses Amazon.com and the Meta platform. The Motley Fool’s U.S. headquarters has a disclosure policy.