Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Amazon share price movements post-earnings: trends investors should watch

With Amazon set to report its Q3 2024 earnings on 1 November, this article examines how its share price typically moves after earnings and provides investor insights.

Magnificent seven Source: Adobe images

(AI summary)

Shipping profits? Amazon's share price delivers after earnings

Amazon will report its third (Q3) 2024 financial results on Friday, 1 November at 7.00am (AEDT).

Amazon's share price has historically shown varied reactions in the days, weeks, and months following each earnings release. This article provides insights into the short and medium-term movements post-earnings and the patterns that can help investors make informed decisions.

Key financials

Expectations for Q3 2024

  • Revenue: $152.27 billion
  • Revenue growth: 11% year-on-year (YoY)
  • Earnings per share (EPS): $1.14

Comparison to previous quarter

  • Revenue: $148 billion
  • EPS: $1.26
  • EPS growth: 101.49% YoY

Post earnings performance analysis

  • Immediate reactions (one day)

Amazon’s share price frequently shows sharp movements on the day after earnings, reflecting immediate investor sentiment. For example, Q3 2022 saw a steep one-day drop, likely due to disappointing results, while Q3 2023 showed strong gains, suggesting positive sentiment in response to favourable outcomes. These single-day shifts underscore the market’s sensitivity to Amazon’s earnings performance

  • Short-term adjustments (one week)

Within a week, share price changes generally reflect a more tempered but still reactive phase. In Q3 2023, the stock continued to rise, indicating sustained confidence, whereas fourth quarter (Q4) 2022 saw declines as initial optimism faded upon closer scrutiny. This one-week period captures a fuller, yet still short-term, market response

  • Medium-term trends (one month)

One-month price movements highlight whether initial sentiment holds up. For instance, Q3 2023 showed continued gains, likely buoyed by positive guidance, whereas Q4 2022 and second quarter (Q2) 2024 saw extended declines, reflecting reduced investor confidence. This timeframe provides a broader view of sentiment around Amazon’s quarterly performance

  • Overall patterns

Positive earnings surprises and strong guidance tend to support share price gains across all timeframes, while weaker results, such as those in Q4 2022, often lead to sustained declines. The stock’s ability to maintain early gains generally depends on strong fundamentals or optimistic guidance

  • Implications for investors

For investors, Amazon's immediate post-earnings price movement can indicate short-term trends but is not always predictive of longer-term performance. Recognising patterns over days, weeks, and months allows investors to anticipate potential price movements, enabling more strategic decisions around buying, holding, or selling Amazon shares based on quarterly results and broader market conditions.

Amazon's post-earnings performance chart

Amazon's post-earnings performance chart Data source: Bloomberg Image source: ClaudeAI
Amazon's post-earnings performance chart Data source: Bloomberg Image source: ClaudeAI
Open a free demo account to practice your trading strategy.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Explore the markets with our free course

Learn how shares work – and discover the wide range of markets you can trade CDFs on – with IG Academy's free ’introducing the financial markets’ course.

Try IG Academy

Put learning into action

Try out what you’ve learned in this shares strategy article risk-free in your demo account.

Try it out

Ready to trade shares?

Put the lessons in this article to use in a live account – upgrading is quick and easy.

  • Trade over 12 000 popular global stocks
  • Protect your capital with risk management tools
  • React to breaking news with out-of-hours trading on 70 key US stocks
Create live account

Inspired to trade?

Put your new knowledge into practice. Log in to your account now.

Log in now

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.