Amazon (AMZN) Stock Eyes New Highs After Upbeat Big Tech Q2 Earnings
Ahead of its Q2 earnings announcement, Amazon's stock increased in after-hours trading as positive outcomes from tech gians tile Microsoft.
Quick overview
- Amazon shares rose 3.5% in after-hours trading, boosted by positive earnings from Microsoft and Meta.
- Despite a cautious Q2 forecast, investor sentiment has improved due to easing trade tensions and optimism in the tech sector.
- Amazon's stock has rebounded 44% since hitting lows in April, positioning it for potential new highs.
- Analysts expect Q2 revenue of $162.09 billion and earnings per share of $1.31, with any positive surprises likely to enhance the stock's momentum.
Live AMZN Chart
[[AMZN-graph]]
Ahead of its Q2 earnings announcement, Amazon’s stock increased in after-hours trading as positive outcomes from tech behemoths like Microsoft and Meta allayed investor fears.
Tech Optimism Fuels After-Hours Amazon Rally
Amazon (NASDAQ: AMZN) rose more than $7 in after-hours trading Tuesday, gaining 3.5% to reach $237.50. The move follows stronger-than-expected earnings from peers Microsoft and Meta, which helped revive risk appetite across the tech space. While sentiment around Amazon had soured in recent weeks due to cautious forward guidance, today’s broader Big Tech performance sparked renewed buying ahead of its own Q2 release, due tomorrow after the bell.
Cautious Forecast Weighs, But Bulls Regain Control
Despite delivering strong Q1 results earlier this year, Amazon’s Q2 forecast was more conservative than many on Wall Street had hoped. The company projected operating income of $13 billion to $17.5 billion—below the consensus estimate of $17.8 billion. Similarly, its revenue guidance of $159 billion to $164 billion came in just shy of analyst forecasts. The cautious outlook, compounded by recent internal restructuring and concerns over international performance, had pressured AMZN shares in recent sessions.
However, investor sentiment appears to be rotating once more, helped by easing trade tension between the U.S. and China, plus optimism that tech megacaps remain resilient even in a higher-rate environment.
Strong Recovery Off April Lows
From a technical perspective, Amazon has staged an impressive rebound. After declining more than 35% from its February peak of $242.52, the stock found a bottom in April and has since surged 44%. Tuesday’s post-market gain essentially completes the retracement of that entire slide, positioning AMZN to test new all-time highs if earnings surprise to the upside.
Wall Street Eyes Q2 Numbers and Forward Momentum
Analysts are expecting Amazon to report Q2 revenue of $162.09 billion and earnings per share of $1.31, which would represent a 9.5% increase compared to the same period last year. With the bar set cautiously low, any upside surprise—particularly in AWS cloud performance or retail margins—could further fuel the current rally.
As one of the last Big Tech firms to report this cycle, Amazon’s results will likely play a key role in shaping broader tech sentiment into August.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save