Will Amazon Surge After the Bell

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Let's face it. No one knows. When it comes to investor sentiment regarding an earnings call, it's anyone's guess how they will react to it. I mean, if it were that easy to call, I'd have quite a lot more money than I already do, right? Wouldn't we all? Amazon stock had a great year last year, with shares surging a whopping 77% in 2023. They had the 20 for 1 stock split of course. Not that that does anything for the valuation of the company, but certainly more investors may have jumped on board with the stock being able to buy shares in the 100s instead of in the 2000s. They were also able to dramatically cut costs and become more efficient. Between 2022-2023 they laid off 27,000 employees and have announced more layoffs to come between their Prime, MGM Studios, Twitch, Audible and Buy with Prime units. This bodes well for investors and the stock as so many costs for unnecessary labor were dipping into their bottom line. All said, investors are expecting a major surge in earnings from the 4th quarter. If they meet or beat analyst expectations the stock may see a slight spike. Shares are up roughly 2.5% in today's trading. We will just have to wait and see how the earnings call goes and we'll see how the stock fares in after hours trading which should give us a really good indication of what to expect in tomorrow's trading session. If the share price drops, I will likely be adding shares. I see Amazon trading in the 200s by year end. The current share price is $159.67. Pre-call shares are already up in after hours by 3.5% which suggests investors are expecting the results to be good and loading up in case of a rally tomorrow.