Tuesday, July 22, 2008

Amazon Q2 Earnings Tomorrow

This is a very important earnings call, not only for Amazon investors, but for all of Wall Street. eBay and others have had so-so earnings announcements recently signaling a slowing down of consumer spending, and the Street appears to be looking to Amazon for the answer.

If Amazon beats estimates and ups guidance for the rest of 08' than their share price should rise substantially and it would improve sentiment on Wall Street.

eBay stated it was concerned with a slow down in the economy and re-stated guidance for the rest of the year, which caused their share price to decline 14%. If Amazon beats and raises, in this environment the share price would have no where to go but up.

If Amazon has a so-so Q2 and re-states guidance for the rest of the year, the whole market may take bit of a hit -- Amazon has become a bell weather stock, IMO.

Analysts are cautious going into earnings, but I think Amazon will pull the rabbit out of the hat.

I do not own shares in eBay or Amazon and am not a investment advisor, this is just a gut feeling based on observation.

Just my 12%

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