Millennials are loading up on Amazon ahead of earnings
- Millennials are extremely bullish on shares of Amazon ahead of its earnings report Thursday afternoon.
- Users on trading apps Robinhood and Stockpile are buying up shares quicker than their older peers.
Amazon is scheduled to report fourth quarter earnings after the closing bell Thursday.
Wall Street expects the e-commerce giant to post adjusted earnings of $1.83 per share on revenues of $59.836 billion for the holiday quarter.
Wall Street analysts have a bearish target of $1,403 for the stock - 2% below the $1,439 price where shares were trading Thursday morning - but millennial retail investors are much more bullish, data from multiple trading platforms show.
On Robinhood, the trading app popular with millennials, young investors are buying shares of Amazon 44% more than they are selling them.
"Investors who live in tech hubs appear to be even more optimistic," Dr. Sahill Poddar, Data Scientist at Robinhood told Business Insider. "Those based in Silicon Valley and Washington State, where Amazon's research facilities and headquarters are located respectively, are buying 66% more than they are selling, while investors in the rest of the U.S. are only buying 30% more than they are selling. This could be related to positive news regarding Amazon Go and Amazon's move into healthcare."
Amazon is also the most popular stock on the app Stockpile, which allows users to buy fractional shares of expensive companies, for both millennials and older investors. Investors there are buying shares 16 times more often than they are selling.
The internet is abuzz ahead of Amazon earnings. StockTwits, a platform where users discussing almost any equity or cryptocurrency send upwards of 200,000 messages a day, said messages around Amazon stock have doubled in daily volume as the company's earnings report approaches.
"In January, sentiment for Amazon has been about 85% bullish but has started trending up into the low 90s since the start of the week going into earnings," Garrett Hoffman, senior data scientist at the StockTwits, told Business Insider. "We saw this upward trend starting to build towards the end of last week, even before Amazon announced the Healthcare news."
Shares of Amazon have gained 30% since the company's last earnings report - or $206 billion of market value.
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