Is Amazon Stock a Buy Ahead of Earnings?
Amazon (NASDAQ: AMZN) reports earnings on Thursday, Oct. 30, after the close. Some may be tempted to guess the stock's next move. But that's not the right game. Earnings-day reactions are notoriously unpredictable; just a single negative surprise on a key metric like revenue, margin, or guidance can spark a sell-off. Of course, things can go the other way, too.
The better question is whether the setup looks attractive for long-term investors at today's price. Amazon runs one massive online retail business and two high-margin operations: AWS and advertising. If those two pillars are growing at healthy clips and the price of the stock is reasonable (I believe it is), a small position in the stock may make sense -- even if the post-report stock price move is unpredictable.
Image source: Amazon.com.
Source Fool.com
