Breaking down Mag 7 earnings: Good or bad?

💡 DMK Insight

Amazon’s EPS miss is a red flag, but the underlying business strength could be a buying opportunity. While the earnings report might have disappointed some traders, the fact that Amazon is ‘firing on all cylinders’ suggests robust operational performance. This discrepancy between earnings and operational strength could lead to a potential rebound in share prices, especially if the market focuses on long-term growth rather than short-term misses. Traders should keep an eye on key technical levels; if AMZN can hold above its recent support level, it could signal a bullish reversal. Additionally, watch for any guidance from Amazon that could indicate future growth trajectories, as this will be crucial for sentiment. On the flip side, the EPS miss could trigger some profit-taking from short-term traders, leading to increased volatility. If AMZN dips below its support, it might attract more selling pressure. So, monitor the stock closely for any signs of recovery or further weakness in the coming days. A decisive move above the recent highs could reinvigorate bullish sentiment.