Earnings Deliver but the Long End Pushes Back. Will Profits Be Enough?

Impact · against what's priced in

The market's recent performance and the shift toward hawkish Fed sentiment act as a headwind for large-cap tech, though the specific earnings contributions of AMZN and GOOGL provide a fundamental floor. For Amazon, the macro environment pressures the valuation multiple, but the core business drivers remain intact.

AMZN−0.20

Challenges what's priced in

The price assumes

Multiple re-rating toward 26-28x forward EPS as fastest-growing hyperscaler

While Amazon's earnings growth was strong, the rise in the 30-year Treasury yield to 5.27% and a shift toward Fed hawkishness pressure the valuation multiples of long-duration growth stocks.

What AMZN's price assumes · Feb 24

• yield curve▲200%
• AMZN
• GOOGL
• ai
• rates
• oil
• geopolitics
• fed
• inflation
• fomc