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Amazon: Betting on cloud services
The Amazon giant probably doesn’t need a special introduction. During the corporate reporting season in the USA, the parameters of Amazon stand out – and clearly deserve attention.
Amazon’s key financial indicators in the second quarter of 2022 are as follows:
Negative net adjusted profit is bad news for the company, but the efficiency of the AWS cloud division, together with the productive work of e-commerce areas, have shown the ability to generate income even in conditions of rising inflation. Perhaps this is what will now become a key factor for business.
Strengths of reporting:
The company can make an effective bet on the development of cloud services and their maintenance capacities.
There are practically no risks – the business has gone through the entire category of problematic issues and worked out each of them. The global risk is now the same for everyone – the recession in the US economy and its consequences.
The consensus estimate for Amazon shares suggests growth to $160-162 in the near quarter and $180 in the year ahead.
The daily trading chart of Amazon shares shows that the MACD indicator is growing in a positive area and strengthens the buy signal. The Stochastic oscillator is also growing in the positive zone and confirms the buy signal.