Upside Surprises

Amazon.com (AMZN) is set to report earnings after the markets closes on Wednesday, April 23rd. Amazon is expected to earn $0.32 per share for its 1st quarter. We expect AMZN to announce earnings that will beat investors’ and analysts’ expectations.



Amazon has beat expectation 3 out of the last 4 quarters by .01 to .11 cents. We are looking for something in the neighborhood of a nickel.



AMZN’s chart looks good as an earnings surprise could boost the shares to $85 in the short term and possibly $90 in the weeks ahead.



We would just buy the stock as we found no value in any of the options based on our expectations of a $85-$90 share price. If the stock were to move to $90 by mid May, the July 85 calls would offer a return of nearly 75%.