Should You Sell AMZN Stock Ahead of Its Earnings?

Core Insights - Amazon.com, Inc. is set to report its earnings on July 31, 2025, and historical patterns indicate that the stock has reacted negatively in 63% of instances following earnings reports over the past five years [2][3] Earnings Expectations - Current consensus estimates for Amazon's upcoming earnings are $1.33 per share on $162.1 billion in sales, compared to $1.26 per share on sales of $147.98 billion in the same quarter last year [3] Historical Performance - Over the last five years, there have been 19 earnings data points, with 7 positive and 12 negative one-day returns, resulting in positive returns approximately 37% of the time [6] - The median one-day negative return in instances of negative performance was -4.7%, with a maximum decline of -14% [3][6] Market Capitalization and Financials - Amazon currently holds a market capitalization of $2.4 trillion, with $650 billion in revenue, $72 billion in operating profits, and a net income of $66 billion over the last twelve months [4] Trading Strategies - Two primary approaches for traders include pre-earnings positioning based on historical odds and post-earnings positioning to react to actual results and market sentiment [5][7] - A strategy based on the correlation between short-term and medium-term returns post-earnings can be employed, particularly if the correlation is high [7][8]