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Based in Seattle, Washington, Amazon.com, Inc. (AMZN) is a global leader in the e-commerce and cloud computing industries. With a market cap of $2.01 trillion, Amazon is renowned for its vast selection of products and services, innovative technology, and customer-centric approach. The company’s diverse portfolio includes online retail, Amazon Web Services (AWS), streaming services, and AI-driven devices, making it a dominant force in the modern digital economy. Amazon is set to announce its fiscal Q2 earnings results on Thursday, Aug. 1.
Ahead of the event, analysts expect AMZN to report a profit of $1.02 per share, up 61.9% from $0.63 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Amazon's adjusted earnings of $1.13 per share for the last quarter surpassed the consensus estimate by 36.1%. Strong demand for its AI initiatives and consistent revenue growth aided Amazon's results.
For fiscal 2024, analysts expect AMZN to report EPS of $4.72, up 66.2% from $2.84 in fiscal 2023.
AMZN stock has gained 27% on a YTD basis, outperforming the broader S&P 500 Index's ($SPX) 18.8% gains and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 8.9% returns over the same time frame.
AMZN shares declined more than 3% on Apr. 30 after the Q1 results were revealed. Revenue increased 13% year over year to $143.31 billion. However, the company's current quarter sales projection of $144 billion to $149 billion fell short of analysts' expectations of $150.07 billion, highlighting the cautious business spending climate in cloud services.
The consensus opinion on AMZN stock is bullish, with an overall “Strong Buy” rating. Of the 45 analysts covering the stock, 42 advise a “Strong Buy” rating, and three recommend a “Moderate Buy.”
This configuration is slightly more bullish than three months ago when the stock had 41 “Strong Buy” ratings. AMZN’s average analyst price target is $225.14, indicating a potential upside of 16.6% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
