Amazon (AMZN) will report third quarter results this afternoon and host a call at 17:30. 

  • Analysts expect Q3 operating income up 525% to $2.17 billion, with EPS of $3.09 (vs. $0.52 last year) and revenue up 30.4% to $57.0 billion. 

  • Amazon guided for Q3 operating income of $1.4-2.4B on revenue of $54.0-57.5 billion. 

  • The Street expects Q4 operating income up 83% to $3.89 bln with revenue up 22% to $73.8 bln. 

Last quarter, Amazon missed sales estimates and guided third quarter revenue below expectations, but no one cared. The company's growth and market position is so dominant that no one has been concerned about market share or competition, and second quarter revenue was actually just above the midpoint of guidance. This will be a key point going into this print as the market seems to be taking valuations into account this time around.

TECHS:

Amazon has a $857 billion market cap and trades at ~100x EPS (70x FY19), ~26x EV/EBITDA, ~3.5x sales and 23x next twelve months FCF per share estimates.

It closed on the 200Day level yesterday as stocks plummeted to a five-month low. The weekly options imply a 6% move in the stock tomorrow.