Amazon's share price is trading at around $100.69. It's set to report EPS of $0.17 on revenue of $145bn this week. How will this impact its stock?

Financials

When comparing the fiscal year that ends on December 31st, 2021, to the prior year, 2020, Amazon’s revenue increased by $83bn and gross profit increased by $44bn. In 2021, net income grew 57% to $33bn billion after tax and all operating expenses. Additionally, EBITDA increased by $11bn, while EPS jumped from $2.09 to $3.24. Moreover, looking at Amazon’s balance sheet, total liabilities rose by $54bn, while total assets increased by a whopping $99bn, offsetting the increase in business liabilities and creating a healthy financial balance within the business. Finally, its cash-on-hand value rose from $84bn to $96bn billion YoY. As a result of the significant rise in assets compared to liabilities, the total equity of the company hiked 48% in 2021.

Technicals

From a technical aspect, Amazon’s stock is currently trading at around $100.69 a share. Taking a look at the chart on the 4-Hour interval, we can see that resistance sits above at $103.48 as highlighted by the red oval. A break above this resistance point could see the price climb towards the $105-$106 range. On the other hand, Amazon is expected to report its earnings on Thursday, 2^nd of February. It is expected to report earnings of $0.17 on revenue of $145bn, and a loss in earnings might see the value of its stock decline. Therefore, at present, minor support sits at $110.23 then at $98.27 then at $96.92 (matching with the horizontal trendline). A break below this trendline may see the price decline as far as $91.53, which is where the next major support level rests. Taking a look at the technical indicators, MACD is currently positive and so is RSI as it reads 65.