-
Amazon reports first-quarter earnings on Tuesday.
-
Investors will be looking for updates on the company’s cloud-computing business, as well as plans for AI.
-
The company’s stock is up 19% in 2024 so far, more than double the S&P 500.
Amazon will report first-quarter earnings on Tuesday after the closing bell.
Investors will be watching for updates on the company’s cloud-computing business, as well as for insights into how Amazon plans to use artificial intelligence.
Amazon’s stock was down 19% year-to-date through Monday’s close, handily outpacing the the S&P 500‘s 8% gain.
Goldman Sachs: Top eCommerce pick into first quarter
Amazon is a top pick in the eCommerce sector, Goldman analysts said. The bank pointed to the company’s resilient retail demand and expected growth in AWS and ad revenue.
“Our industry work and the third-party data sources we surveyed point to online consumer spending remaining resilient in Q1’24. But we see a wide dispersion of results between companies,” the analysts wrote.
The bank maintained its “Buy” rating and $220 price target, implying a 22% upside from the stock’s current levels.
Wells Fargo: Healthy trends for the first quarter
Amazon looks to be on a good trajectory, especially considering that the company is looking to change its fee structure for its Fulfillment by Amazon program. That alone could drive up to $1.2 billion in incremental operating income compared to the previous quarter, Wells Fargo analysts estimated.
“Believe revenue recognized from enterprise cloud migrations still relatively tepid in 1Q but commitments in place for 2H acceleration,” the bank said in a recent note.
Analysts raised their price target for Amazon stock to $217, implying a 20% upside from current levels.
Bank of America: Top stock drivers are in play
Amazon is expected to post healthy growth over the first quarter, BofA analysts said. The bank pointed to Amazon CEO Andy Jassy’s letter to shareholders, which suggested positive progress in retail margins, AWS, and ad revenue — areas that are all “top stock drivers” for the company.
“We expect a 1Q beat, and while 2Q set up has some unusual q/q hurdles, we expect positive 1Q metrics and call commentary to be constructive & consistent with the recent Shareholder Letter,” the note said.
BofA analysts reiterated their “Buy” rating and $204 price target for the stock, implying a 13% upside from its current levels.
Amazon’s consensus first-quarter net sales estimate is $142.59 billion
1st quarter
-
Net sales estimate: $142.59 billion
-
Online stores net sales estimate: $54.77 billion
-
Physical Stores net sales estimate: $5.08 billion
-
Third-Party Seller Services net sales estimate: $34.63 billion
-
Subscription Services net sales estimate: $10.83 billion
-
AWS net sales estimate: $24.11 billion
-
North America net sales estimate: $85.55 billion
-
International net sales estimate: $32.47 billion
-
-
Third-party seller services net sales excluding F/X estimate: +15.8%
-
Subscription services net sales excluding F/X estimate: +12.1%
-
Amazon Web Services net sales excluding F/X estimate: +14.5%
-
EPS estimate: 82c
-
Operating income estimate: $10.95 billion
-
Operating margin estimate: 7.63%
-
North America operating margin estimate: +4.92%
-
International operating margin estimate: -1.85%
-
-
Fulfillment expense estimate: $22.4 billion
-
Seller unit mix estimate: 59.4%
2nd quarter
Source: Bloomberg data
Read the original article on Business Insider