AMZN Historical Stock Price Moves Around Earnings

AMZN earnings gap represents the amount the stock price has changed due to an earnings announcement. It is calculated from the previous close price, before they announced earnings, to the opening price right after the earnings release.

The AMZN earnings report will summarize the last 3 years of AMZN earnings gap. You will see how each of the earnings gap moves were in the morning, a summary of the average moves, and the percent of times the stock gapped up vs down.

The absolute average move measures the magnitude of the earnings moves. It takes all the up and down moves and converts them to positive numbers and then takes the average. This average represents the average percent move in either direction.

Typically for an options earnings play, options traders will price the options based on their expectations of how much the stock will move in either direction after the earnings announcement. For instance, AMZN options may be predicting a 5% move (either up or down) after they announce earnings. You can compare that to how much AMZN has historically moved, in absolute terms, to gauge if the market is estimating above or below it's historical average move. This will also give you the sense of how far away current markets are implying a move from historical moves.

After AMZN reports earnings, the stock can experience unusal volatility. There are a few ways to measure how the stock performs after it's earnings. You can look at the historical gap move on the day of it's earnings. You can also see how it behaved from the opening price. For instance, how high does it tend to get from the opening price to the high of the day or how far to the low of the day. We can also look at the average drift from the opening price to the close. The stock price drift will tell you if most of the movement is at the stock market opening price from the previous day's close or if the bulk of the price movement happened throughout the trading hours after the opening price. Another analysis is that we can look at how it performs 1 day, 2 days or 1 week after earnings. Does the stock price follow through or tend to have some distinguishable pattern. You can see the historical results in the Stock Price Performance table in the Day of Earnings columns and in the After Earnings columns.

You can find out how AMZN stock prices have historically traded before the earnings announcement to see if there are particular patterns of behavior or historical run ups going into an earnings release. Do traders get excited right before the release and tend to buy up AMZN shares? And if there is a pattern, when does it typically start? To see the historical behavior, you can view the data and statistics in the Before Earnings columns.

This report allows you to quickly uncover historical stock trends and patterns with consistent returns around earnings. You can use the tools to model price movements, trends, patterns and historical outcomes to maximize strategy building and increase your odds with historical statistics.

Click the image below to see an example.

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