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#SaxoStrats - Amazon misses a beat but don't lose heart

Amazon shares slipped around 14% in after-market trading as Wall Street reacted negatively to the firm's Q4 earnings-per-share miss ($1.00 versus $1.55). Shares closed at $550, above the 200-day moving average at $532.

However, Saxo Bank's Head of Equity Strategy Peter Garnry thinks the street has been fixated on the EPS and is ignoring the steady growth with Q1 revenue guidance at $26.5bn-$29bn vs $27.6bn estimated, Prime membership is up 51% year-over-year (an indicator of future growth), while AWS revenue growth sits at 69% y/y in Q4.

Outlining his trade Peter sets out a long position with a trailing stop based on a current valuation which underestimates future potential, according to Peter.

02:10 minutes
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