What happened
Shares of e-commerce and cloud computing giant Amazon.com (AMZN 3.43%) jumped sharply higher on Monday. The move was likely primarily driven by a bullish day in the overall stock market. But the company notably has an earnings report coming up this week; so some of the stock's gains could represent bets from investors and traders who are hoping for a good report.
The stock rose as much as 4.4% on Monday but finished the trading day up a total of 3.9%.
Image source: Getty Images.
So what
Highlighting an upbeat day in the overall market today, the S&P 500 finished the trading day up 1.9% and the tech-heavy Nasdaq Composite rose an impressive 3.4%. The gains appear to be an attempt from the market to rebound from a rough January, which marked the S&P 500's worst month since March 2020.
Amazon investors are likely getting prepared for the company's earnings report. The e-commerce specialist reports its fourth-quarter results on Thursday. With shares down more than 10% year to date, some investors may see this as a good time to buy the stock, as there's always a chance that shares could pop when Amazon reports earnings (of course, they could also fall).
Now what
When Amazon reported its third-quarter results late last year, management guided for a significant slowdown in its revenue growth in Q4. Analysts, on average, are expecting the company's revenue to increase 9.6% year over year during the period. This is toward the high end of management's guidance range, which called for 4% to 12% year-over-year growth during the period.
