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Amazon Up 10% Post-Earnings One Quarter After Big Disappointment: Is The Stock Always This Volatile?

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Amazon.com, Inc. AMZN 9.54% shares are surging 9.6 percent in Friday’s session after the company reported blowout Q1 earnings driven by profitability in the company’s e-commerce business and major growth in its AWS cloud services segment.

The big positive move comes as a relief to Amazon shareholders who were hit hard by last quarter’s 7.6 percent drop on the day after a disappointing earnings report.

While a $59/share one-day swing may seem extreme, long-time Amazon traders know this type of volatility is par for the course when it comes to earnings. In fact, Amazon’s last two post-earnings moves have been relatively tame compared to other recent earnings reactions.

Related Link: AWS Buzz On Twitter, Tech Message Boards A Positive Sign For Amazon

The stock surged 9.8 percent following Q2 earnings last year, 14.1 percent following Q1 earnings and 13.7 percent on the day following Q4 2014 earnings.

If the past is any indication, there may be even more upside for Amazon shareholders in the week ahead. Following four out of the last five earnings reports, Amazon’s stock continued in the direction of its one-day move for another week.

Last quarter, the stock fell 7.6 percet on the day after earnings, but was down 15.6 percent after one week. In the previous quarter, the 6.2 percent one-day gain spilled into an 11.1 percent one-week gain.

Disclosure: the author holds no position in the stocks mentioned.

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