Amazon Soars on Upbeat Earnings, S&P 500 Futures Add to Gains as Big Tech Delivers

AMAZON EARNINGS REPORTS KEY POINTS:

• Amazon’s earnings surprise to the upside, beating on both EPS and revenue expectations
• Shares of the tech company soar in extended trading following first-quarter results
• S&P 500 futures extend gains as the e-commerce giant delivers

Most Read: Nasdaq 100 Blasts Higher as Meta’s Earnings Boost Tech, Apple in Focus Next Week

Amazon’s shares soared as much as 10% at one point in extended trading after announcing better-than-expected quarterly results, sending S&P 500 futures slightly higher.

On the details, the e-commerce company reported earnings per share of $0.31 on revenue of $127.4 billion for the first three months of the year, beating both top- and bottom-lines estimates, driven in part by resilient online shopping and strong advertising performance.

Here is how the company performed relative to Wall Street’s expectations:

• Earnings per share: $0.31 versus $0.21 expected
• Revenue: $127.4 billion versus $124.55 billion expected

Source: DailyFX Earnings Calendar

AMAZON 5-MINUTE CHART

Source: TradingView

The good news did not end there. Amazon also offered a constructive outlook, indicating that it expects net sales of between $127.00 billion and $133.00 billion for the second quarter, slightly ahead of Wall Street’s projections of $129.5 billion, a sign that the worst may be over for the firm.

With big tech delivering upbeat numbers compared to extremely pessimistic expectations, the S&P 500 may pick up additional momentum to push higher in the coming days, with immediate resistance located near the psychological 4,200 level. If this technical barrier is taken out, bulls could become emboldened to launch an attack on 4,310, the 61.8% Fibonacci retracement of the 2022 slump.

S&P 500 FUTURES TECHNICAL CHART

Source: TradingView