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Amazon (AMZN) is one of the world’s most diversified and powerful companies, operating across three major areas: e-commerce (the world’s largest online retail platform), cloud computing (AWS, the world’s leading cloud provider), and digital advertising (the world’s third-largest player, behind Google and Meta).
For prop firm traders, Amazon has a unique profile among large tech companies: its margins vary significantly across business segments, sometimes leading to earnings reports that surprise in either direction. AWS, Amazon’s cash cow, gets close attention with every earnings release: its growth rate and margins are key indicators traders watch to anticipate post-earnings moves.
AMZN’s volatility of 3 to 10 USD per day is moderate under normal conditions but can increase significantly around earnings releases. Prime Day (an annual shopping event in July) and the year-end holiday season (Q4) can be especially interesting trading periods because of their impact on revenue forecasts.
Macro themes affecting Amazon include the health of the US consumer (for e-commerce), cloud competition with Microsoft Azure and Google Cloud, and the development of generative AI through Amazon Bedrock and its internally developed Trainium/Inferentia chips.
On TopTraderPrime, AMZN is available with a spread of 0.08 and leverage of 1:20, during the US session (15h30-22h CET).
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