Amazon’s fourth quarter 2022 earnings are set to be released this week, with EPS expected to be 0.17 and earnings of $145.77 billion. Since the beginning of the year, Amazon has prepared for the coming global recession by cutting 18,000 jobs, up from a reported 10,000 job increase late last year. This is the largest layoff in Amazon’s history, with the majority of it expected to come from core retail and human resources departments. Shareholders are concerned about how much money Amazon has lost in its core retail business, Bloomberg reports. Does this mean more downsides lie ahead for Amazon? Will earnings be a surprising downside?
With earrings getting ridiculously cheap and stock dropping, is this a good time to buy on Amazon in the long run? Is this a dip worth buying?
Seasonal variations over the last 25 years show that it is an option worth considering. The stock has increased 19x over the last 25 years with an average return of 12.28%. The biggest gain was an extraordinary 65% rise in 2007, and the biggest decline was around the dot-com bubble burst in 2000, which resulted in a massive loss of -28.80%.
Main trade risks: The main risk here is that Amazon’s earnings show serious concern for Amazon’s business, resulting in a longer-term decline. A broader global economic slowdown could also hamper Amazon’s medium-term prospects.
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