The much-awaited Amazon Q2 2020 earnings crushed expectations across the line. For the second quarter of the year, Amazon delivered EPS $10.30, beating expectations by $8.8 and reported $5.2 billion net income in the second quarter, double the amount in the same period last year. What does it mean for the Amazon share price?
On top of that, the company announced that it higher 175,000 employees since last March and plans to continue hiring for the period ahead. Moreover, the Q3 revenue guidance took analysts by surprise too, as it points to revenues around $90 billion, above estimates of $86.
Other Financial Highlights for the Quarter
As Jeff Bezos mentioned, the quarter that ended is just another unusual quarter. The coronavirus pandemic changed the way the world functions, and Amazon was there to benefit from the changes.
With the exception of its AWS arm, that missed expectations by a thread, Amazon’s results crushed the market’s expectations, vindicating the sky-high valuations.
Free cash flow to the firm, a crucial metric for any corporation, rose by more than half when compared with the similar period last year. It shows the company’s ability to generate cash despite its terrific growth.
Amazon share price jumped 5% after hours, setting the stage for a possible rally on the New York’s open. However, there’s one thing to consider that might affect today’s Amazon share price performance – the end of the month flows.
Amazon Share Price Technical Analysis
Dow Jones ended 2.32% higher at 25,595 after the index tested and bounced from the 50-day moving average. The index rejected several times the last two weeks at the 200-day moving average. The short term picture has improved after yesterday’s gains, but the long term outlook remains bearish below the 200-day moving average.